A modest increase in the interest rate earned on Uganda’s 25-year Treasury bond last month represents a small victory for investors and also exposes difficulties associated with taming the country’s debt yield curve, amid rising borrowing costs, experts say.
The bond, Uganda’s newest government debt security, was unveiled to investors in the first quarter of FY2025/26. This debt instrument registered a yield of 16 percent during its pioneer auction in August 2025, an outcome that puzzled investors and bond traders.
