The Bank of Uganda has announced plans to raise Shs355 billion through its latest Treasury Bills auction scheduled for Tuesday, September 24, 2025. The central bank will offer investors a mix of short and medium-term securities, as part of its ongoing efforts to manage government financing needs and provide safe investment options for the market.
According to the auction breakdown, Shs25 billion will be raised from 91-day Treasury Bills, Shs75 billion from 182-day bills, and the largest share, Shs255 billion, from 364-day bills. The securities will mature between December 2025 and September 2026, with settlement for successful bids set for Wednesday, September 25.
Market analysts note that the auction comes at a time when yields on government securities have been edging upwards, driven by tight liquidity conditions within the banking sector and persistent inflationary pressures. The Bank of Uganda is expected to balance the dual goals of attracting investor interest while managing the cost of borrowing for government.
Treasury Bills remain a popular choice for both commercial banks and institutional investors seeking short-term, low-risk investment opportunities. However, rising yields have also signalled increased borrowing costs for government as it seeks to bridge fiscal gaps.
With this auction, the Bank of Uganda continues its strategy of tapping into the domestic debt market to finance public spending, refinance maturing obligations, and stabilize the financial system. The outcome of the auction will provide a key indicator of investor sentiment and liquidity trends in the weeks ahead.