The Uganda shilling traded on a stable footing today, with balanced demand and supply conditions keeping the market largely unchanged, according to Wednesday’s Absa Market Report.
Market participants remained focused on the first government bond issuance of the new fiscal year. The currency opened and closed at 3660/3670.
In the money markets, liquidity conditions remained ample, with overnight and one-week rates averaging 9.75% and 10% respectively. To manage the excess liquidity, the central bank was in the market with an overnight mop-up repo.
Today Bank of Uganda conducted the first Treasury bond auction this fiscal year where the benchmark 2-year, 5-year and 15-year were reopened clearing strong at 12.800%, 14.700% and 15.75% respectively. A total of Ugx 1.015 trillion in face value was accepted.
