Overview:
The auction, numbered 1224, offered a total of UGX 355 billion in government paper but received bids totaling UGX 907.9 billion, representing an overall subscription rate of approximately 255 percent. Analysts say the robust demand underscores investor confidence in Uganda’s macroeconomic stability.
KAMPALA: The Bank of Uganda (BoU) on Wednesday, March 11, 2026, conducted a Treasury Bill auction that drew strong investor demand, resulting in significant oversubscription across all tenors.
The auction, numbered 1224, offered a total of UGX 355 billion in government paper but received bids totaling UGX 907.9 billion, representing an overall subscription rate of approximately 255 percent. Analysts say the robust demand underscores investor confidence in Uganda’s macroeconomic stability.
The 91-day bills, offered at UGX 25 billion, attracted the highest relative interest with bids of UGX 190.1 billion—an oversubscription of 7.6 times. The 182-day bills, with UGX 75 billion on offer, received UGX 82.7 billion in bids, while the 364-day bills drew the largest volume of interest at UGX 635.1 billion for UGX 255 billion available.
Despite the high demand, yields remained competitive. The 364-day bill, often seen as a benchmark for long-term interest rate expectations, settled at an effective yield of 12.00 percent. Other yields included 10.65 percent for the 91-day bills and 11.54 percent for the 182-day bills.
Market experts note that Treasury Bills continue to offer investors a “safe haven” amid a stable economic environment. Recent data shows headline inflation at 3.9 percent as of early March 2026, comfortably within the Bank of Uganda’s medium-term target of 5 percent.
The Central Bank Rate (CBR) was held steady at 9.75 percent in February to balance economic growth with inflation control. Uganda’s economy is projected to grow between 6.5 and 7.0 percent in the 2025/26 fiscal year, driven by private sector activity and preparations for upcoming oil production.
“This strong investor appetite reflects confidence in the country’s fiscal and monetary policy framework,” said a financial analyst following the auction. “Treasury bills remain an attractive instrument for investors seeking stable returns above inflation in a buoyant economy.”
The Bank of Uganda continues to use these auctions to manage liquidity and guide interest rates in the market, providing both short- and long-term instruments for institutional and individual investors.