Govt raises over sh2 trillion from securities in February

__________________

The Ugandan government raised a total of sh2,266.6b (approximately sh2.27 trillion) in February 2025 from the sale of its securities, the latest report on the performance of the economy shows.

The report by the finance ministry indicated that of the total amount raised, sh742.8b was from treasury bills while sh1,523.7b (approximately sh1.52 trillion) from treasury bonds.

The balance of sh1,619.9b (approximately sh1.62 trillion) was used to finance other items in the current national budget.

Treasury bills are risk-free short-term financial instruments for investment regularly issued to the public by the Government through Bank of Uganda (BOU), while treasury bonds are long-term financial instruments also issued by the Government through BOU to the investing public.

The investment period for treasury bills is short-term tenors of three months, six months and one year while that of treasury bonds is long-term tenors of two years, three years, five years, 10 years and 15 years.

The report also said yields (interest rates) on the 182-day and 364-day treasury bills declined to 14.0 per cent and 15.0 per cent in February, down from 14.4 per cent and 15.3 per cent in the previous month, respectively.

The yields for the two-year, five-year and 15-year tenor bonds reduced to 15.80 per cent, 16.3 per cent and 17.0 per cent in February from 16.0 per cent, 16.8 per cent and 17.5 per cent in January, respectively.

Conversely, the yield on the 91-day tenor slightly edged upwards to 10.7 per cent in February from 10.4 per cent recorded the previous month.

The general reduction in yields is partly due to the lagged effect of the Central Bank monetary policy easing stance and demand for Government securities, the report added.