On 6 August 2025, the Bank of Uganda conducted a Treasury Bond auction featuring four government bonds, including new 5-Year and 25-Year bonds and reopenings of existing 2-Year and 15-Year bonds.
The auction provided investors with options across different maturities, while the results showed the yields at which each bond cleared.
Here are the results and what they meant for investors.
Which Treasury Bonds Were Auctioned?
Four Treasury Bonds were included in the August 2025 auction:
- 2-Year Bond — UG12J1301280
Coupon: 14.125%
Maturity: 13 January 2028
Status: Reopening - 5-Year Bond — UG12H0108300
Coupon: 15.500%
Maturity: 1 August 2030
Status: New Issue - 15-Year Bond — UG12K2306393
Coupon: 15.800%
Maturity: 23 June 2039
Status: Reopening - 25-Year Bond — UG12M0707507
Coupon: 16.000%
Maturity: 7 July 2050
Status: New Issue
This gave investors exposure to shorter, medium and longer-term government securities within the same auction.
August 2025 Treasury Bond Auction Yields
The auction produced the following cut-off yields:
| Treasury Bond | Coupon Rate | Cut-off Yield |
|---|---|---|
| 2-Year | 14.125% | 15.75% |
| 5-Year | 15.500% | 15.50% |
| 15-Year | 15.800% | 17.65% |
| 25-Year | 16.000% | 16.00% |
One important distinction is that the coupon rate and cut-off yield are not necessarily the same.
The coupon determines the scheduled interest payments based on the bond’s face value.
The yield reflects the return investors were accepting based on factors including the price paid for the bond and its future cash flows.
This distinction was particularly visible in the reopened 15-Year Bond, which carried a 15.80% coupon but cleared at a 17.65% yield.
For a fuller explanation, see Treasury Bond Rates in Uganda.
What Did the August 2025 Auction Results Show?
The 15-Year Bond Recorded the Highest Cut-Off Yield
At 17.65%, the reopened 15-Year Treasury Bond recorded the highest cut-off yield among the four securities in the auction.
Its coupon rate, however, remained 15.80%.
This is an important example of why investors should look beyond the coupon when comparing Treasury Bonds.
The New 5-Year Bond Cleared at 15.50%
The new 5-Year Treasury Bond had both a 15.50% coupon and a 15.50% cut-off yield.
Its maturity date was 1 August 2030.
The Reopened 2-Year Bond Cleared at 15.75%
The reopened 2-Year Treasury Bond carried a 14.125% coupon and recorded a 15.75% cut-off yield.
A New 25-Year Bond Was Introduced
The auction also included a new 25-Year Treasury Bond, carrying a 16.00% coupon and maturing on 7 July 2050.
Its cut-off yield was 16.00%.
How Much Interest Would a Treasury Bond Pay?
The amount of coupon interest you receive is determined by the coupon rate, not simply the auction cut-off yield.
For example, consider the 15-Year Treasury Bond from this auction.
It carried a:
15.80% annual coupon
If you held UGX 1,000,000 in face value, the annual coupon would be:
UGX 1,000,000 × 15.80% = UGX 158,000
Treasury Bond coupons in Uganda are generally paid every six months.
That would therefore correspond to approximately:
UGX 79,000 every six months before applicable taxes.
This is different from saying the investor earns 17.65% of the face value as annual coupon interest.
The 17.65% figure was the auction yield, while 15.80% was the bond’s coupon rate.
Why Can the Coupon Rate and Yield Be Different?
Once a Treasury Bond has been issued, its price can be above or below its face value.
That changes the return an investor receives relative to the amount actually paid for the bond.
As a result:
Coupon rate tells you how scheduled interest payments are calculated.
Yield helps you understand the return relative to the bond’s price and cash flows.
This becomes especially important with reopened bonds and Treasury Bonds bought on the secondary market.
Two bonds with similar coupon rates can therefore offer different yields.
Can You Still Buy These Treasury Bonds?
This auction took place in August 2025, so it should be treated as a historical auction result rather than a list of bonds currently available for investment.
However, Treasury Bonds do not disappear simply because an auction has ended.
Existing government bonds can be bought and sold on the secondary market, subject to availability and prevailing market prices.
Through Level Africa, investors can review Treasury Bonds currently available and compare their:
- Yield
- Coupon rate
- Price
- Maturity date
- Minimum investment
- Investment terms
How to Invest in Treasury Bonds Through Level Africa
You do not have to wait for a specific Bank of Uganda auction to start exploring Treasury Bonds.
1. Create & Verify
Create your Level Africa account and complete the required identity verification.
2. Fund Your Wallet
Add money to your Level wallet using the available funding options.
3. Choose a Treasury Bond
Review the Treasury Bonds currently available and compare their yield, coupon rate, price, maturity and other terms.
4. Invest & Track
Choose your investment, complete the transaction and track it through your Level dashboard.
For the complete process, read How to Buy Treasury Bonds in Uganda: A Step-by-Step Guide.
Looking for Current Treasury Bond Rates?
The figures on this page are specifically from the August 2025 Bank of Uganda Treasury Bond auction.
Treasury Bond yields change as new auctions take place and market prices change.
For current rates and available bonds, see Treasury Bond Rates in Uganda: Current & Historical Rates.
You can also follow upcoming issuance dates through the Bank of Uganda Treasury Bond Auction Calendar 2026/27.
Final Thoughts
The August 2025 Treasury Bond auction offered investors four different maturities and produced cut-off yields ranging from 15.50% to 17.65%.
The results also provide a useful lesson for anyone comparing Treasury Bonds today:
Don’t look at the coupon rate alone.
The coupon tells you how scheduled interest payments are calculated, while the yield helps you understand the return relative to the price of the bond.
If you are considering Treasury Bonds now, compare the current yield, coupon rate, price and remaining maturity rather than relying on historical auction rates.
Frequently Asked Questions
What were the Bank of Uganda Treasury Bond rates in August 2025?
The August 2025 auction produced cut-off yields of 15.75% for the 2-Year Bond, 15.50% for the 5-Year Bond, 17.65% for the 15-Year Bond and 16.00% for the 25-Year Bond.
Which Treasury Bond had the highest yield in the August 2025 auction?
The reopened 15-Year Treasury Bond recorded the highest cut-off yield at 17.65%.
Is the Treasury Bond coupon rate the same as the yield?
Not necessarily. The coupon determines scheduled interest payments based on face value, while yield reflects the return relative to factors including the price paid for the bond.
How often do Uganda Treasury Bonds pay interest?
Treasury Bond coupons in Uganda are generally paid every six months.
Can I buy a Treasury Bond after the Bank of Uganda auction has ended?
Yes. Existing Treasury Bonds can be traded on the secondary market, subject to availability and prevailing prices.
Can I invest in Treasury Bonds through Level Africa?
Yes. Level Africa allows investors to review available Treasury Bonds, compare their terms, fund their wallet and invest online.
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