The Bank of Uganda has raised a total of Shs893.44 billion from two Treasury bill auctions and one Treasury bond auction in the month of June.
Particularly, Shs426.64 billion was from T-Bills while Shs466.80 billion was from the T-Bond auction.
This is contained in the State of the Economy Report for June 2024 released by the Ministry of Finance.
Treasury bills are issued when the government needs money for a short period. These bills are issued only by the central government, and the interest on them is determined by market forces.
According to the report, the total amount raised was used to finance items in the budget.
In June 2024, the report said yields (interest rates) on treasury bills were largely unchanged.
“The annualized yields for the 364-day and 182-day tenors remained unchanged at 13.6% and 13.1% respectively,” the report says.
However, yields for the 91-day tenor rose from 9.6% in May 2024 to 10.7% in June 2024.
“All auctions for Treasury bills were oversubscribed, with the average bid-to-cover ratio amounting to 4.17. This indicates sufficient liquidity in the money market,” the report says.
The government issued two treasury bonds in June 2024, a 3-year tenor and a 20-year tenor. Yields slightly increased for both tenors compared to their previous issuance. Yields increased to 17.00% in June 2024 for the 20-year bond compared to 16.75% offered for the same tenor in March 2024. For the 3-year bond, yields increased to 15.50% in June 2024 up from 14.99% in March 2024.
