Investors placed strong demand on the one-year Treasury bill in Wednesday’s auction, with the Bank of Uganda accepting Sh424.5 billion against the Sh300 billion offered.
Results from Treasury Bills Auction No. 1237, held on November 4, 2026, show that the 364-day Treasury bill recorded a cut-off yield of 14.750 per cent, the highest across the three maturities.
The 182-day Treasury bill attracted accepted bids worth Sh10.25 billion against Sh35 billion offered, at a yield of 13.001 per cent, while the 91-day paper attracted Sh4.23 billion against Sh15 billion offered, with a yield of 11.202 per cent.
The returns show that investors seeking longer-term placements demanded higher yields, with the one-year instrument offering a 3.548 percentage-point premium over the 91-day Treasury bill. Across the three maturities, the central bank accepted approximately Sh439 billion in bids against Sh350 billion offered.
The one-year Treasury bill accounted for the bulk of the accepted bids, reflecting the strong demand for the longer-dated instrument compared to the shorter-term securities. Treasury bills are short-term government securities issued by the Bank of Uganda on behalf of Government to raise funds to meet its financing needs. They also provide investors with an avenue to earn returns on their money.
The securities will be settled on November 5, 2026, while the next Treasury bills auction is scheduled for November 18, 2026.
