BoU to issue 15-year Treasury Bond
THE Bank of Uganda has announced plans to issue a seven-to-15-year Treasury bond, a first by the bank, before the end of this financial year.
By Vision Reporter
THE Bank of Uganda has announced plans to issue a seven-to-15-year Treasury bond, a first by the bank, before the end of this financial year.
Treasury Bonds are the prime way by which the Central Bank withdraws money from the economy through borrowing from the public for periods in excess of one year. The money is used to finance recurrent government expenditures.
“We have done thorough consultations and analysed the market potential to accommodate longer term Treasury Bond issues,†said Dr. Louis Kasekende, the BoU deputy governor recently.
Kasekende said the bank was looking to emulate the more developed economies, primarily the US, which has 30-year Treasury Bond issues.
This development comes after the Central Bank issued a sh100b 3–year bond and two Treasury bill auctions, one with an offer of sh90b and the other of sh80b in January.
“We want Ugandans to consider investing in Treasury Bills and bonds as opposed to investing in land, housing and cars,†Kasekende said.
This development will not only provide for the extension of the yield curve, but increase the product menu and assist in the deepening of Uganda’s capital market.
In a related development, the Central Bank has revealed that it is in advanced stages of delivering a modern trading platform and securities depository system.
“It is our expectation that the new trading platform will improve the turnaround time in our market operations and increase efficiency,†said Kasekende.
THE Bank of Uganda has announced plans to issue a seven-to-15-year Treasury bond, a first by the bank, before the end of this financial year.
Treasury Bonds are the prime way by which the Central Bank withdraws money from the economy through borrowing from the public for periods in excess of one year. The money is used to finance recurrent government expenditures.
“We have done thorough consultations and analysed the market potential to accommodate longer term Treasury Bond issues,†said Dr. Louis Kasekende, the BoU deputy governor recently.
Kasekende said the bank was looking to emulate the more developed economies, primarily the US, which has 30-year Treasury Bond issues.
This development comes after the Central Bank issued a sh100b 3–year bond and two Treasury bill auctions, one with an offer of sh90b and the other of sh80b in January.
“We want Ugandans to consider investing in Treasury Bills and bonds as opposed to investing in land, housing and cars,†Kasekende said.
This development will not only provide for the extension of the yield curve, but increase the product menu and assist in the deepening of Uganda’s capital market.
In a related development, the Central Bank has revealed that it is in advanced stages of delivering a modern trading platform and securities depository system.
“It is our expectation that the new trading platform will improve the turnaround time in our market operations and increase efficiency,†said Kasekende.