Shilling gains marginally ahead of sh1.4 trillion bond auction

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The Uganda shilling posted marginal gains Monday, closing at the 3622/3632 levels from the opening of 3630/3640 supported by subdued trading activity.

Absa noted that: "The session has seen dollar selling interest from commodity exporters and diaspora inward remittances that have consequently outweighed the pockets of demand from the energy and manufacturing sectors."

In the debt market, the central bank has scheduled a treasury bond auction on November 26, 2025, with sh1.4 trillion on offer in the 2yr, 5yr, 15yr, and 25yr tenors.

Analysts anticipate the local unit to post further marginal gains, drawing support from the expected month-end flows and dollar inflows targeting investments in the treasury bonds.

The money markets were liquid during day’s session with the interbank overnight and one-week yields averaging at 9.63% and 10.09%, respectively.