Government raises Sh2.5 trillion from treasury bills, bonds in June
According to the Ministry of Finance's June 2026 Performance of the Economy Report, the Government conducted three domestic securities auctions during the month, comprising two Treasury Bill auctions and one Treasury Bond auction, raising a total of Sh2.50 trillion.
Cumulatively, Government mobilised Sh24.85 trillion through Treasury Bills and Treasury Bonds during the 2025/26 financial year.
KAMPALA - Government raised Sh2.50 trillion through Treasury Bills and Treasury Bonds in June 2026, with strong demand from investors enabling the Treasury to mobilise funds for refinancing maturing debt and financing the national budget.
According to the Ministry of Finance's June 2026 Performance of the Economy Report, the Government conducted three domestic securities auctions during the month, comprising two Treasury Bill auctions and one Treasury Bond auction, raising a total of Sh2.50 trillion.
Of this amount, Sh772.37b was raised through Treasury Bills, while Sh1.73 trillion came from Treasury Bonds.
The report shows that Sh820.07b of the proceeds was used to refinance maturing government securities, while the remaining Sh1.68 trillion financed other items in the national budget.
Cumulatively, Government mobilised Sh24.85 trillion through Treasury Bills and Treasury Bonds during the 2025/26 financial year. The report indicates that Sh14.89 trillion was used to finance government expenditure, while Sh9.97 trillion refinanced maturing securities.
The ministry said investor appetite for government securities remained strong throughout June, with all Treasury Bill auctions attracting bids well above the amount on offer.
The average bid-to-cover ratio stood at 2.82, meaning investors submitted bids worth almost three times the value of Treasury Bills offered for sale during the month. The report says this reflected continued confidence in government securities despite prevailing global economic uncertainty.
Treasury Bill yields remained broadly stable in June, indicating relatively steady borrowing costs for Government.
The yield on the 91-day Treasury Bill remained unchanged at 10.9%, while the 182-day Treasury Bill yield eased slightly from 11.3% in May to 11.2% in June. Similarly, the yield on the 364-day Treasury Bill declined marginally from 12.1% to 12.0% over the same period.
The government also held auctions for three-year, 10-year and 20-year Treasury Bonds during June.
The yield on the three-year bond declined slightly from 13.4% at the previous auction held in April to 13.3% in June. In contrast, yields on the longer-term bonds edged upwards, with the 10-year bond rising from 15.5% to 15.6%, while the 20-year bond increased from 16.1% to 16.5%.
Despite the slight adjustments, the ministry said bond yields remained relatively stable compared to the previous issuances.
Treasury Bills and Treasury Bonds are among the government's principal domestic borrowing instruments used to finance budget operations and manage public debt.
Treasury Bills are short-term securities with maturities of up to one year, while Treasury Bonds are medium- and long-term instruments issued to raise financing for longer-term government needs.