In a significant financial development, the Ugandan government amassed a total of Sh2.27 trillion in February 2025 through the issuance of its securities, as detailed in the latest economic performance report from the Ministry of Finance.
The breakdown of the funds reveals that Sh742.8 billion was secured from treasury bills, while a more substantial Sh1.52 trillion originated from treasury bonds. After settling securities that had matured during this period, the government was left with Sh1.62 trillion to channel into the current national budget.
Treasury bills, characterized as risk-free short-term financial instruments, are regularly offered to the public by the government via the Bank of Uganda (BOU). These instruments come with investment periods of three months, six months, and one year. Conversely, treasury bonds are long-term financial instruments, also issued through the BOU, with tenors extending to two, three, five, ten, and fifteen years.
The report further highlighted a general decline in yields (interest rates) for both treasury bills and bonds in February. Specifically, yields on the 182-day and 364-day treasury bills decreased to 14.0% and 15.0%, respectively, down from 14.4% and 15.3% in the previous month. Similarly, yields for two-year, five-year, and fifteen-year tenor bonds reduced to 15.8%, 16.3%, and 17.0%, respectively, compared to 16.0%, 16.8%, and 17.5% in January. This downward trend is partly attributed to the lagged effect of the Central Bank’s monetary policy easing stance and the prevailing demand for government securities.
