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[QUOTE="Munyaradzi Mafaro, post: 41989, member: 636"]
Bank of Uganda raised over 1.1 trillion shillings during Wednesday treasury bond sales. Investors bought government bonds with terms of 2 years, 5 years, and 15 years. The central bank sold 280 billion shillings worth of 2-year bonds to eager buyers. Officials also moved 319 billion shillings in 5-year bonds and 519 billion in 15-year papers. Strong demand pushed total sales above expectations across all bond categories.

Interest rates climbed higher for bonds with longer payment periods. The 2-year bonds paid 15.75 percent returns to investors who bought them. Five-year government papers offered 16.75 percent yields for patient money lenders. Long-term 15-year bonds attracted buyers with 17.8 percent annual returns. Higher rates reward investors who wait longer for their money back.

Demand exceeded what the government planned to sell during the auction event. Banks and investment companies wanted more bonds than officials offered for sale. Competitive bidding drove up prices as buyers fought for limited government debt papers. The treasury uses bond money to pay for roads, schools, and other public projects. Settlement happens June 12 when successful bidders pay for their bond purchases.
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