The Bank of Uganda has released the results of the August 26, 2026 Uganda Government Treasury Bond auction, showing strong investor demand across the reopened 2-year, 5-year and 15-year bonds.
All three securities attracted bids above the amounts offered, with the strongest demand recorded on the 15-year Treasury Bond.
The auction produced cut-off yields of:
- 2-Year Treasury Bond: 11.700%
- 5-Year Treasury Bond: 13.750%
- 15-Year Treasury Bond: 15.200%
The auction was held on Wednesday, August 26, 2026, with settlement scheduled for Thursday, August 27, 2026.
August 2026 Uganda Treasury Bond Auction Results
| Tenor | Amount Offered | Total Bids Received | Accepted Bids | Cut-Off Yield | Bid-to-Cover |
|---|---|---|---|---|---|
| 2-Year | UGX 230.0B | UGX 461.48B | UGX 237.23B | 11.700% | 1.945 |
| 5-Year | UGX 330.0B | UGX 683.79B | UGX 414.39B | 13.750% | 1.680 |
| 15-Year | UGX 430.0B | UGX 1.052T | UGX 353.41B | 15.200% | 2.978 |
The results show substantial demand across the three maturities, but there are important differences in both investor demand and the amounts ultimately accepted.
2-Year Treasury Bond Results
The reopened 2-year Treasury Bond, ISIN UG0000001376, carries a coupon rate of 15.250% and matures on November 16, 2028.
Bank of Uganda offered UGX 230 billion.
Investors submitted approximately UGX 461.48 billion in bids, while approximately UGX 237.23 billion was accepted.
The bond cleared at:
Cut-off price: 110.850 per UGX 100
Yield to cut-off price: 11.700%
Bid-to-cover ratio: 1.945
This means demand for the security was well above the amount offered.
5-Year Treasury Bond Results
The reopened 5-year Treasury Bond, ISIN UG12J2005328, carries a 15.000% coupon and matures on May 20, 2032.
Bank of Uganda offered UGX 330 billion.
Total bids reached approximately UGX 683.79 billion, with approximately UGX 414.39 billion accepted.
The auction produced:
Cut-off price: 108.547 per UGX 100
Yield to cut-off price: 13.750%
Bid-to-cover ratio: 1.680
The results again show that demand exceeded the amount initially offered.
15-Year Treasury Bond Results
The strongest demand was recorded on the reopened 15-year Treasury Bond.
The security, ISIN UG12K2306393, carries a 15.800% coupon and matures on June 23, 2039.
Bank of Uganda offered UGX 430 billion.
Investors submitted bids worth approximately UGX 1.052 trillion.
The bond cleared at:
Cut-off price: 105.418 per UGX 100
Yield to cut-off price: 15.200%
Bid-to-cover ratio: 2.978
Approximately UGX 353.41 billion in bids were accepted.
The level of bidding is particularly notable. More than UGX 1 trillion was tendered for a security where UGX 430 billion had initially been offered.
What Does the Bid-to-Cover Ratio Tell Us?
The bid-to-cover ratio helps show the level of demand at a government securities auction.
In simple terms, it compares the amount investors wanted to buy with the amount ultimately available for allocation under the auction calculation.
The August auction recorded bid-to-cover ratios of:
2-Year: 1.945
5-Year: 1.680
15-Year: 2.978
A ratio above 1 indicates that demand exceeded supply.
The 15-year bond’s 2.978 bid-to-cover ratio therefore stands out as the strongest of the three securities.
This suggests particularly strong demand for longer-dated government securities at this auction.
Coupon Rate vs Yield: What’s the Difference?
One detail investors should pay attention to is the difference between the coupon rate and yield.
For example, the 2-year bond has a coupon of 15.250%, but the auction’s cut-off yield was 11.700%.
Similarly:
| Tenor | Coupon Rate | Cut-Off Yield |
|---|---|---|
| 2-Year | 15.250% | 11.700% |
| 5-Year | 15.000% | 13.750% |
| 15-Year | 15.800% | 15.200% |
Why are they different?
These were reopened bonds, meaning they had already been issued previously.
Investors were therefore bidding for existing securities at auction-determined prices.
All three cut-off prices were above UGX 100 per UGX 100 of face value:
2-Year: 110.850
5-Year: 108.547
15-Year: 105.418
When an investor pays above the bond’s face value, the effective yield can be lower than the stated coupon rate.
This is why investors should not look at the coupon alone when comparing Treasury Bonds.
The purchase price, remaining maturity and resulting yield all matter.What Do the August Treasury Bond Results Tell Investors?
Three things stand out from the auction.
1. Demand exceeded the amounts offered across all three bonds
The 2-year, 5-year and 15-year securities all attracted significant investor interest.
This indicates continued demand for Uganda Government Treasury Bonds across different investment horizons.
2. Demand was particularly strong for the 15-year bond
More than UGX 1.05 trillion was tendered for the 15-year security.
Its bid-to-cover ratio of 2.978 was also substantially higher than those recorded for the 2-year and 5-year securities.
3. Longer maturity offered the highest cut-off yield
The yield curve across the three auctioned securities was:
2-Year → 11.700%
5-Year → 13.750%
15-Year → 15.200%
Investors therefore received a higher cut-off yield as the maturity extended across these three securities.
Longer maturities, however, also expose investors to money being committed over a longer investment horizon and to greater sensitivity to changes in market interest rates.
The highest yield should therefore not automatically be interpreted as the best investment for every investor.
When Is the Next Uganda Treasury Bond Auction?
The next Uganda Government Treasury Bond auction is scheduled for:
Wednesday, September 9, 2026.
Investors interested in participating in upcoming government securities auctions should pay attention to the official auction invitation, which will provide the securities being offered, amounts, maturities and submission requirements.
Investing in Uganda Treasury Bonds
Treasury Bonds can provide investors with access to government securities across different maturity periods.
But choosing between bonds should involve more than comparing coupon rates.
Investors should consider:
- Yield to maturity
- Purchase price
- Remaining investment term
- Withholding tax
- Liquidity
- Interest-rate risk
- Their own investment horizon and financial goals
Through Level Africa, investors can explore available Treasury Bonds and other investment products from one platform.
Explore Treasury Bonds available on Level Africa and choose investments that align with your financial goals.
This article is provided for general information and investor education and should not be considered personalised investment advice.