Treasury Bonds Investments. This Week's Auction and the Opportunities ahead.

Correction of Heading.

Happy Heroes Day to all of you who are working tirelessly to change your financial situation.

Friends,

The Bank of Uganda will be auction off the 3 treasury bonds on this Wednesday and since today is a public holiday, you have latest Tuesday before mid-day to take your Primary Auction form to your settlement Bank.

These are the Breakdown

1. UG12G0907265: 2-Year Treasury bond with a coupon rate of 13.5% and WHT of 20% Maturing in July 2026. (Anyone who wants to invest for 12 months, this is the best Bond. You buy it in June, and it Pays 3 coupons in a period of 13 months and then they pay you back all your money by July 9, 2026. Yes. Say you buy it for 10 million, it will give you Ugx 540K in July, Jan and July 2026 and then 10 million back in July 2026.)

2. UG0000001533: 5-Year Treasury bond with a coupon rate of 14.25% and WHT of 10% maturing in August 2029.

   Yes, this 5-year bond has a withholding tax of 10% because it’s a reopened bond which was first issued in 2014 as a 15-year bond, and the Treasury re-opened it as a 5-year bond in this calendar year.

3. UG12K2306393: 15-Year Treasury bond with a coupon rate of 15.8% and WHT of 10% maturing in June 2039. (Another good cash management bond, as you invest in it in June, and you have a chance to get around 20% of your investment back in coupon return in just a space of 13 months)

This Auction marks the final treasury bond auction in the financial year 2024-2025, and on the FY 2024-2025 Bond Calendar.

This auction comes at a pivotal time, following the recent release of the 2025-2026 fiscal budget for which we know now that the Government plans to Borrowing over Ugx 27 trillion from the Domestic Market to fund the budget.

Table below showing the Coupon payment schedule from July 10, 2025 (30 days after the Auction of the Bond)

Happy Investing Everyone.

Alex Kakande