Overview:
The government issued 3 treasury bonds in July 2024 of 2-year tenor, 5-year tenor and 15-year tenor. Yields exhibited mixed trends across tenors, slightly decreasing from 16.50% in May 2024 to 15.80% in July for the 15-year, remaining unchanged at 15.50% for the 5-year tenor compared to its previous issuance in May 2024 and increasing to 15.25% from 13.75% in April 2024 for the 2-year tenor.
In July 2024, the Government of Uganda raised a total of Shs1.576.33 trillion from the issuance of treasury instruments.
According to the Performance of the Economy Report for July 2024, which was released by the Ministry of Finance on Wednesday, Shs. 823.00 billion was from the issuance of T-Bills while Shs.753.33 billion was from the issuance of T-Bonds.
A total of Shs.527.73 billion went towards refinancing maturing treasury instruments, while the remaining amount of Shs1.048.60 trillion was used for financing other items of the budget (domestic borrowing for budget).
The government issued 3 treasury bonds in July 2024 of 2-year tenor, 5-year tenor and 15-year tenor. Yields exhibited mixed trends across tenors, slightly decreasing from 16.50% in May 2024 to 15.80% in July for the 15-year, remaining unchanged at 15.50% for the 5-year tenor compared to its previous issuance in May 2024 and increasing to 15.25% from 13.75% in April 2024 for the 2-year tenor.
Save for the 364-day tenor, whose annualized yield rate remained unchanged at 13.6% as in the previous month, yields on treasury bills generally declined. In July 2024, the 91-day tenor yield edged downwards to 9.9% from 10.7% in June 2024, while the 182-day tenor dropped to 12.9% from 13.1% in the previous month. All auctions for Treasury bills were oversubscribed, with the average bid-to-cover ratio amounting to 2.57.