September 2024 Bank Of Uganda Treasury Bond Auction – Results & What It Means for You

What Happened in the September 2024 Auction?

On September 4, 2024, the Bank of Uganda reopened three treasury bonds: 2-year, 5-year, and 15-year maturities. These are not new bonds — they were issued before and offered again to raise more funds from investors.

The following bonds were reopened in this auction:

• UG12G0907265 – 13.500% 2-Year Bond maturing 09-Jul-2026

• UG0000001533 – 14.250% 5-Year Bond maturing 23-Aug-2029

• UG12K2306393 – 15.800% 15-Year Bond maturing 23-Jun-2039

What Bonds Were Offered and at What Rates?

The cut-off yield is the final interest rate investors receive when they successfully buy a bond at auction. The longer the bond, the higher the yield — to reward you for waiting longer.

What These Results Tell Us

• The 5-year bond was in high demand — over UGX 400 billion was raised, showing investor preference for medium-term investments.

• The 2-year bond at 15.50% provides a strong short-term return, ideal for those with upcoming financial needs like school fees or business capital.

• The 15-year bond offered 16.50%, a steady return for long-term goals like retirement or building wealth for the next generation.

Across all three, the high bid-to-cover ratios show strong investor interest in government bonds as a safe way to grow money in Uganda.

Example: What You Could Earn

If you invested UGX 1,000,000 in the 5-year bond at 16.00%:

• You’d receive UGX 160,000 annually, split into two payments

• Over 5 years, that’s UGX 800,000 in interest

• You also get back your full UGX 1,000,000 at the end

How to Invest in Treasury Bonds via Level Africa

With Level Africa, investing is easy, digital, and fully licensed.

Here’s how to get started:

1. Create an account on Level Africa

2. Upload your National ID or Passport (KYC)

3. Go to “Treasury Bonds” under Products

4. Choose a bond that suits your goal

5. Deposit money into your wallet

6. Place your order – bonds marked “Available” can be bought instantly

7. Track your interest and returns in your dashboard

Final Thoughts

The September 2024 auction delivered attractive yields and solid demand. Whether you’re saving for short-term goals or long-term plans, treasury bonds remain one of the safest, most rewarding options in Uganda.

Start Now – Create an Account on Level Africa

Join our community of like minded investors like yourself today Building Wealth With Level Africa.

Stay updated by following our WhatsApp channel.

---

Frequently Asked Questions About Treasury Bonds in Uganda

What are government bonds?

Government bonds are a way to lend money to the Government of Uganda. In return, the government pays you a fixed interest rate every 6 months and gives back your full investment at the end of the bond’s term.

How do treasury bonds work in Uganda?

You buy a bond (e.g. 3, 5, or 10 years), the government pays you interest every 6 months, and you get your full capital back when the bond matures. All bonds are issued and regulated by the Bank of Uganda.

What is the minimum amount to invest in government bonds?

You can start investing with UGX 100,000 using a non-competitive bid. No broker is needed when using platforms like Level Africa.

How can I buy government bonds in Uganda?

You need a Central Depository System (CDS) account or a digital investment platform like Level Africa.
Steps:

1. Create an account on Level Africa
2. Upload your National ID or Passport (KYC)
3. Go to “Treasury Bonds” under Products
4. Choose a bond that matches your investment goals
5. Deposit funds into your wallet
6. Place your order — instantly if marked “Available”
7. Track your bond and earnings from your dashboard

What are the current treasury bond interest rates in Uganda (2025)?

Rates vary by bond type and auction results. For example:

• 2-Year bond: around 15.75%
• 10-Year bond: around 16.25%
• 20-Year bond: up to 18.50%
  All rates are set during each auction by the Bank of Uganda.

Are treasury bonds safe in 2025?

Yes. Treasury bonds are backed by the Government of Uganda and are considered among the safest investments, especially for long-term or retirement goals.

Do government bonds pay interest?

Yes. Interest is called a coupon and is paid out every 6 months. You receive it directly to your wallet or bank account.

Can I sell a bond before it matures?

Yes, bonds are transferable and can be rediscounted if you need to exit early, although the resale price depends on current market rates.

How do interest rates affect bonds?

If new bond rates go up, the value of existing bonds on the market may go down (and vice versa). However, if you hold your bond until maturity, you still get your full investment and all promised interest.

What’s the difference between treasury bonds and treasury bills?

• Treasury bonds: Long-term (2–25 years), pay interest every 6 months
• Treasury bills: Short-term (91–364 days), sold at a discount and paid back in full at maturity

Can individuals buy Bank of Uganda treasury bonds?

Yes. Both individuals and institutions can invest. Many Ugandans now use Level Africa to access bonds directly with no paperwork.

How often are treasury bonds auctioned in Uganda?

Typically, every 28 days. The auction calendar is published annually by the Bank of Uganda, and Level Africa notifies you ahead of each sale.

---