The Bank of Uganda has announced its latest Uganda Government Treasury Bond auction, with UGX 990 billion across three bonds scheduled for auction on Wednesday, 7 October 2026.
The auction will re-open existing 3-year, 10-year and 20-year Treasury Bonds, giving investors exposure across short-, medium- and long-term maturities.
The 3-year bond carries a 12.00% coupon, the 10-year bond carries a 16.00% coupon, while the 20-year bond carries a 15.00% coupon.
For investors considering the auction, however, the coupon rate is only part of the picture. Because these are re-openings, the final auction price and yield will also matter when evaluating the investment.
October 2026 Treasury Bond Auction at a Glance
| Bond | 3-Year | 10-Year | 20-Year |
|---|---|---|---|
| ISIN | UG12G0609291 | UG12K1405378 | UG12L1608466 |
| Coupon Rate | 12.00% | 16.00% | 15.00% |
| Maturity | 6 Sep 2029 | 14 May 2037 | 16 Aug 2046 |
| Amount Offered | UGX 230B | UGX 330B | UGX 430B |
| Withholding Tax | 20% | 10% | 10% |
The 20-year Treasury Bond has the largest amount on offer at UGX 430 billion, followed by UGX 330 billion for the 10-year bond and UGX 230 billion for the 3-year bond.
Combined, Bank of Uganda is offering UGX 990 billion across the three securities.
Important Auction Dates
The auction is scheduled for Wednesday, 7 October 2026, with settlement taking place the following day.
Auction date: Wednesday, 7 October 2026
Bank of Uganda bid submission deadline: 10:00 a.m., 7 October 2026
Settlement date: Thursday, 8 October 2026
The 10:00 a.m. deadline in the Bank of Uganda notice applies to bids submitted by Primary Dealer Banks and other commercial banks through the Central Securities Depository.
Investors using Level Africa should therefore follow the investment timelines communicated on the Level Africa platform rather than waiting for the Bank of Uganda submission deadline.
What Is a Treasury Bond Re-opening?
All three securities in this auction are re-openings.
A re-opening happens when the government issues an additional amount of a Treasury Bond that is already in circulation instead of creating an entirely new bond.
That is why each security already has an ISIN, coupon rate and maturity date.
For example, the 10-year security being offered on 7 October carries the ISIN UG12K1405378, a 16.00% coupon rate, and matures on 14 May 2037. Those characteristics already belong to the bond and do not change simply because it is being offered again.
What the new auction determines is the price and yield at which additional units of the bond are allocated.
That distinction is important when looking at the headline coupon rates.
3-Year Treasury Bond: 12.00% Coupon
The shortest maturity in this auction is the 3-year Treasury Bond, ISIN UG12G0609291.
It carries a 12.00% coupon rate and matures on 6 September 2029.
Bank of Uganda is offering UGX 230 billion, and the security is subject to 20% withholding tax.
Compared with the other two securities in this auction, this bond has the shortest remaining maturity.
That means investors considering it are looking at a significantly shorter investment horizon than those considering the 10-year or 20-year securities.
10-Year Treasury Bond: 16.00% Coupon
The 10-year Treasury Bond, ISIN UG12K1405378, carries a 16.00% coupon rate and matures on 14 May 2037.
Bank of Uganda is offering UGX 330 billion of this security.
The applicable withholding tax stated in the auction invitation is 10%.
At 16.00%, this bond has the highest coupon rate of the three securities being offered.
However, investors should not interpret the 16.00% coupon as the return they will necessarily earn from purchasing the bond in this auction.
The auction price will determine the resulting yield.
20-Year Treasury Bond: 15.00% Coupon
The longest-dated security is the 20-year Treasury Bond, ISIN UG12L1608466.
It carries a 15.00% coupon rate and matures on 16 August 2046.
At UGX 430 billion, this is also the largest of the three offerings in the October auction. The applicable withholding tax is 10%.
Its longer maturity means investors considering this bond should think about a much longer investment horizon than investors considering the 3-year security.
Coupon Rate vs Yield: What Investors Should Understand
One of the most important things to understand about this auction is that coupon rate and yield are not the same thing.
The coupon rate determines the interest payments associated with the bond’s face value.
For example, a 16% coupon tells you how the bond’s coupon payments are calculated.
The yield, however, reflects the return relative to the price at which the bond is purchased.
Because these are existing bonds being re-opened, investors may purchase them at a price above, below or equal to their face value.
This means a bond with a 16% coupon does not automatically mean an investor buying it through the auction earns a 16% yield.
The final auction results will tell us the accepted price and yield for each of the three securities.
How Does the October Treasury Bond Auction Work?
Bank of Uganda accepts both competitive and non-competitive bids.
The minimum competitive bid is UGX 200.1 million, while the minimum non-competitive bid is UGX 100,000.
Non-competitive bids are accepted at the auction cut-off price/YTM for amounts of up to UGX 200 million per tenor.
Competitive bidding works differently.
Investors participating competitively specify the price they are willing to pay. Bank of Uganda requires bid prices per UGX 100 to be expressed to three decimal places.
Only Primary Dealer Banks are permitted to submit competitive bids directly into the auction.
Successful competitive and non-competitive bids are then allocated at one price: the lowest accepted auction price per UGX 100, corresponding to the highest accepted auction yield/YTM.
Bank of Uganda also reserves the right to increase or reduce the amount offered and to accept or reject applications in whole or in part.
How Treasury Bond Investors Earn Returns
Treasury Bond investors primarily receive returns through coupon payments during the life of the bond.
The bonds in this auction have established coupon payment schedules because they are existing securities being re-opened.
If an investor continues holding a bond until maturity, the bond’s principal is repaid at maturity according to its terms.
The amount an investor ultimately earns relative to the amount invested will depend on factors including the bond’s coupon, purchase price, remaining maturity and applicable taxes.
This is why investors should look beyond the headline coupon rate when comparing Treasury Bonds.
You can also use the Level Africa Treasury Bond Calculator to estimate coupon payments and expected cash flows from a bond.
Why Does Withholding Tax Differ Between the Bonds?
The Bank of Uganda invitation specifies 20% withholding tax for the 3-year bond and 10% for the 10-year and 20-year bonds.
This means investors should consider the applicable tax treatment alongside the coupon and auction yield when evaluating the potential income from each security.
Looking only at the headline coupon can therefore give an incomplete picture of the investment.
How to Invest in Treasury Bonds Through Level Africa
Investors do not have to navigate the Treasury Bond auction process themselves to access Treasury Bonds through Level Africa.
1. Create & Verify
Create your Level Africa account and complete the required verification.
2. Fund Your Wallet
Add funds to your Level wallet.
3. Choose a Treasury Bond
Review the Treasury Bonds currently available through Level Africa, including their key investment details.
4. Invest & Track
Select your investment, complete the transaction and track it through your Level Africa account.
What Happens After the 7 October Auction?
Once the auction is completed, attention shifts from the coupon rates to the actual auction results.
The results will show how much investors bid for, how much Bank of Uganda accepted and the price and yield established for each security.
That will allow investors to see the outcome for the:
- 3-year 12.00% Treasury Bond
- 10-year 16.00% Treasury Bond
- 20-year 15.00% Treasury Bond
Level Africa will publish the auction results once they are released.
Investors can also follow the Bank of Uganda Treasury Bond & Treasury Bill Auction Calendar for upcoming government securities auctions and the Treasury Bond Rates in Uganda tracker for current and historical auction yields.
Frequently Asked Questions
What were the Treasury Bond yields on 7 October 2026?
The Bank of Uganda published cut-off yields of 14.000% for the 3-year bond, 16.850% for the 10-year bond and 16.925% for the 20-year bond.
Which Treasury Bond attracted the highest demand?
The 20-year Treasury Bond attracted the largest amount of bids, approximately UGX 859.4 billion, against an initial offer of UGX 430 billion.
How much did Bank of Uganda accept?
Approximately UGX 1.039 trillion was accepted across the three Treasury Bond re-openings.
Why are coupon rates different from auction yields?
Coupon rates determine fixed coupon payments based on face value, while auction yields reflect the bond’s pricing and cash flows. A bond purchased above or below face value can have a yield different from its coupon rate
Can I buy Treasury Bonds after the auction?
Yes. Government Treasury Bonds can be available in the secondary market after issuance. Availability and pricing depend on market conditions.
When is the next Treasury Bond auction in Uganda?
The next auction is scheduled for 28 October 2026. Investors should consult the latest Bank of Uganda auction calendar and announcements for confirmation of the securities and terms.