The Bank of Uganda (BoU) has announced a major government securities auction scheduled for Wednesday, January 7, 2026, offering a total of Shs 990 billion in Treasury Bonds as the government continues to mobilise domestic financing for budgetary and debt management needs.
According to the auction invitation issued under the Public Finance Management Act, 2015, the central bank will re-open three benchmark Treasury Bond tenors: a 3-year, 10-year, and 20-year bond. The re-openings are intended to enhance liquidity in the secondary market and strengthen benchmark yield curves across the short, medium, and long ends of the market.
Under the offer, BoU will auction Shs 230 billion for the 3-year bond carrying a coupon rate of 15.550 percent and maturing on July 6, 2028. The 10-year bond, with a coupon of 16.250 percent and maturing on November 8, 2035, will raise Shs 330 billion, while the 20-year bond, carrying a 15.000 percent coupon and maturing on June 18, 2043, will account for the largest share at Shs 430 billion.
Successful bidders will settle their transactions on Thursday, January 8, 2026. Interest payments on the bonds will be made semi-annually, with detailed coupon schedules already published by the central bank.
The auction will be conducted on a uniform price basis, meaning that all successful competitive and non-competitive bids will be allocated at a single price, the lowest accepted auction price, which corresponds to the highest accepted yield. Non-competitive bids of up to Shs 200 million per tenor will be accepted in full at the cut-off yield, a provision designed to encourage broader participation by smaller investors.
Only Primary Dealer banks are permitted to submit competitive bids, while non-competitive bids may be submitted through commercial banks. The current Primary Dealers include Absa Bank, Citi Bank, Centenary Bank, DFCU Bank, Equity Bank, Housing Finance Bank, Stanbic Bank, and Standard Chartered Bank.
The minimum competitive bid has been set at Shs 200.1 million, while non-competitive bids can be as low as Shs 100,000, widening access to government securities for retail and smaller institutional investors. Bid prices must be quoted per 100 with up to three decimal places.
BoU cautioned that it retains the right to increase or reduce the amounts on offer and to accept or reject bids either partially or in full, depending on market conditions.
