Uganda to issue 25-year bond as markets await offshore interest
The auction will feature four benchmark securities, including a new 5-year and 25-year issuance, alongside reopened 2-year and 15-year papers.
Uganda to issue 25-year bond as markets await offshore interest
By Ali Twaha
Journalists @New Vision
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The Bank of Uganda will on this Wednesday (August 6) offer a 25-year treasury bond, the longest tenor on the market, as part of its sh1.4 trillion bond auction.
The auction will feature four benchmark securities, including a new 5-year and 25-year issuance, alongside reopened 2-year and 15-year papers.
Market analysts at Absa said that currency traders are keeping a close eye on how offshore investors will respond, given the longer duration on offer.
Traders said the mood during Monday's trading session reflected that caution, with the Uganda shilling opening and closing flat at 3575/3585. Market players mostly stayed on the sidelines, waiting for signals from this week’s bond auction before making any big moves.
The local currency remains range-bound and is expected to trade between 3570 and 3620 in the short term.
Meanwhile, money markets stayed liquid. Overnight funding rates averaged 9.66%, while one-week money traded around 10.10%.