Overview:
The two-year bond attracted bids worth Shs545.53 billion against an offer of Shs230 billion, while the five-year bond received Shs824.28 billion in bids compared to Shs330 billion on offer. The 15-year bond drew bids totaling Shs655.39 billion, against an offer of Shs430 billion.
Kampala. Investor demand for government securities remained strong in the latest Treasury bond auction, with bids worth more than Shs2.03 trillion submitted against a total offer of Shs990 billion.
The auction featured reopened two-year, five-year and 15-year Treasury bonds.
The two-year bond attracted bids worth Shs545.53 billion against an offer of Shs230 billion, while the five-year bond received Shs824.28 billion in bids compared to Shs330 billion on offer. The 15-year bond drew bids totaling Shs655.39 billion, against an offer of Shs430 billion.
However, only Shs1.02 trillion in bids was accepted, comprising Shs382.53 billion for the two-year bond, Shs522.29 billion for the five-year bond and Shs110.6 billion for the 15-year paper.
The auction results show that the yield at the cut-off price stood at 12.8 percent for the two-year bond, 14.7 percent for the five-year bond and 15.75 percent for the 15-year bond.
The strongest investor demand was recorded for the 15-year bond, which posted a bid-to-cover ratio of 5.926, meaning investors sought to purchase nearly six times the amount ultimately accepted. The five-year and two-year bonds recorded bid-to-cover ratios of 1.578 and 1.426, respectively.
The auction involved the reopening of three existing Treasury bonds maturing on November 16, 2028, May 20, 2032, and June 23, 2039. The auction was conducted on July 1, with settlement scheduled for July 2.