The March Treasury Bond Auction succeeded in issuing 1.1 billion dirhams

This is the first issuance since the escalation began in the region, with a total issuance volume of 1.1 billion dirhams.

This auction is part of the annual treasury bond issuance program for 2026, according to the schedule published on the Ministry of Finance’s official website.

strong demand

The auction witnessed strong demand from banks dealing in the treasury bond tranche due in September 2027 and the tranche due in January 2031.

The total value of the submitted bids amounted to 4.85 billion UAE dirhams, equivalent to about 4.4 times the size of the issue.

This strong demand reflects investors’ continued confidence in the strength of the UAE’s financial sector and the durability of the national economy, despite market fluctuations.

The auction results showed competitive pricing, with the yield to maturity (YTM) reaching 3.73% for the bond tranche due in September 2027 and 3.85% for the bond tranche due in January 2031.

Safe investment alternatives

The realized returns represent a small price difference of 16 basis points from the returns of US Treasury bonds with similar maturities for the two tranches at the time of issuance.

Two tranches of treasury bonds have also been listed on Nasdaq Dubai, enhancing easy access for investors in the secondary market.

It should be noted that the local currency sukuk and bond programs work to build a return curve denominated in the UAE dirham, and provide safe investment alternatives to investors.

This contributes to enhancing the competitiveness of the domestic debt capital market, improving the investment environment, and supporting sustainable economic growth.