When you hear about Treasury bills and Bonds, what comes into ones mind is that these are reserved for banks and big institutions. And of course, that used to be my own assumption years ago, but not anymore. After participating in several auctions and watching how the system works in Uganda, I learned that Treasury bills are actually one of the simplest and safest investments available—if you understand the rules.

One of those rules, which confuses many new investors, is that FOK/TOK instructions are not allowed to be traded outside normal trading. This isn’t a random restriction. It exists to protect market order, fairness, and transparency—especially in government securities like Treasury bills.

To understand why this matters, we need to step back and look at what Treasury bills are, how they are traded in Uganda, and how the Bank of Uganda manages the entire process.

What Are Treasury Bills?

Treasury bills (commonly called T-bills) are short-term debt instruments issued by the government to raise money. In Uganda, they are issued by the Bank of Uganda (BoU) on behalf of the Government of Uganda.

When you buy a Treasury bill, you are essentially lending money to the government for a fixed period. In return, the government pays you back at maturity with interest.

Uganda’s Treasury bills typically come in three tenors:

• 91 days
• 182 days
• 364 days

Unlike savings accounts, Treasury bills do not pay periodic interest. Instead, they are sold at a discount and redeemed at full face value. The difference between what you pay and what you receive at maturity is your return.

Why Many Ugandans Choose to Invest in Treasury Bills

Over time, I’ve seen more individuals move into Treasury bills, especially during periods of economic uncertainty. The reasons are straightforward.

1. Safety Comes First

Treasury bills are backed by the Government of Uganda. That makes them one of the lowest-risk investments in the country. For people who want to preserve capital, this matters more than chasing high returns.

2. Predictable Returns

Once your bid is accepted, your return is locked in. There are no surprises, no market swings, and no emotional decisions to make later.

3. Accessibility

You don’t need millions to get started. While institutions dominate large volumes, individual investors can still participate directly or through licensed brokers.

4. Liquidity

Although Treasury bills are short-term, they can also be sold in the secondary market if you need funds before maturity—subject to market conditions.

The Role of the Bank of Uganda (BoU)

The Bank of Uganda is central to everything involving Treasury bills.

BoU:

• Announces auction schedules
• Receives bids
• Determines cut-off yields
• Settles successful purchases
• Maintains records through the Central Depository System (CDS)

Every Treasury bill auction in Uganda follows a structured process. This is important because it explains why certain order types, including FOK and TOK, are restricted to normal trading hours only.

What Does FOK/TOK Mean in Trading?

Before we go further, let’s break this down in simple terms.

Fill or Kill (FOK)

A Fill or Kill order means the entire order must be executed immediately, or it is canceled completely.

Time or Kill (TOK)

A Time or Kill order allows the trade to be executed within a specified time window. If it is not completed within that time, it is canceled.

These instructions are common in fast-moving markets like equities. However, government securities are different, especially in Uganda’s primary market.

Why FOK/TOK Is Not Allowed Outside Normal Trading

This restriction exists for several practical reasons.

1. Treasury Bills Are Auction-Based, Not Continuous Trades

Treasury bills in Uganda are primarily sold through scheduled auctions, not continuous trading like shares on a stock exchange. Outside normal trading windows, there is no active price discovery.

Allowing FOK or TOK orders outside these windows would distort the process.

2. Fairness to All Participants

Auctions are designed so all bids are considered at the same time. If FOK/TOK orders were allowed outside normal trading, certain investors could gain unfair timing advantages.

3. System Limitations

The Central Depository System and settlement processes are aligned to defined trading periods. Orders requiring immediate execution simply cannot be guaranteed outside those hours.

4. Risk Control

Government securities demand stability. Restricting complex execution instructions helps reduce operational and settlement risks.

From experience, many rejected bids trace back to misunderstandings around timing rather than lack of funds.

Best Times to Invest in Treasury Bills in Uganda

Timing doesn’t mean guessing rates. It means understanding patterns.

Auction Timing

BoU typically announces auctions weekly. Bids are submitted before a fixed deadline, often mid-morning.

Submitting bids early and correctly gives you time to fix errors if something goes wrong.

Interest Rate Cycles

When inflation is rising, yields often increase. When inflation stabilizes, yields may fall. Watching BoU policy statements helps you anticipate these movements.

Personal Cash Flow

The best time to invest is when you’re sure you won’t need the money before maturity. Treasury bills reward patience.

Common Reasons Treasury Bill Purchases Are Rejected

Rejections happen more often than people admit. Here are the most common reasons I’ve seen.

1. Incorrect Bid Details

A small mistake in yield, amount, or tenor can invalidate a bid.

2. Insufficient Funds

Funds must be available in your settlement account by the deadline. Promises don’t count.

3. Wrong Order Instructions

Using FOK/TOK outside normal trading windows leads to automatic rejection.

4. Late Submission

Even being a few minutes late can disqualify a bid.

5. Non-Competitive Bid Limits

BoU sets limits on non-competitive bids. Exceeding them leads to rejection.

How to Increase Approval Chances for Your Treasury Bill Purchase

After a few early mistakes, I learned that approval is mostly about discipline.

Double-Check Everything

Before submission, review:

• Amount
• Tenor
• Yield
• Settlement account

Submit During Normal Trading Hours

Avoid last-minute submissions. This also ensures FOK/TOK restrictions don’t work against you.

Maintain Adequate Liquidity

Always fund your account slightly above the bid amount to cover fees.

Understand Auction Results

Study previous cut-off rates. Overbidding is a common reason bids fail.

Choosing the Best Broker in Uganda

Your broker plays a bigger role than many people realize.

What to Look For:

• BoU licensing
• Clear communication
• Experience with government securities
• Transparent fees

A good broker explains why a bid failed instead of blaming the system. That alone saves you time and money.

From experience, brokers who actively participate in auctions tend to guide clients better than those who treat Treasury bills as an afterthought.

Treasury Bills vs Other Investments in Uganda

Treasury bills may not make you rich overnight, but they serve a clear purpose.

• Compared to fixed deposits, T-bills often offer better returns.
• Compared to stocks, they carry far less risk.
• Compared to real estate, they require less capital and management.

Many experienced investors use Treasury bills as a foundation, not a final destination.

Final Thoughts From Experience

The rule that FOK/TOK is not allowed to be traded outside normal trading is not meant to frustrate investors. It exists to keep Uganda’s government securities market stable, fair, and predictable.

Once you understand how Treasury bill auctions work, most of the confusion disappears. What remains is a disciplined investment that rewards patience and planning.

Treasury bills may seem quiet, but over time, they quietly protect and grow capital—especially in uncertain economic periods.