Bond Market Turnover Rises by 319%
Ghana’s secondary bond market recorded a sharp rebound in activity, with total turnover rising by 319.43% week-on-week to GH¢2.34 billion, driven largely by end-of-month portfolio rebalancing by investors.
According to market analysis by Databank Research, trading activity was heavily concentrated in the short-to-medium segment of the yield curve, reflecting continued investor caution toward long-dated securities.
The 2031–2034 maturities dominated market activity, accounting for 56.34% of total turnover and clearing at a weighted average yield of 12.53%. This segment, often referred to as the “belly” of the curve, continues to attract demand due to its balance between yield and duration risk.
Similarly, the 2027–2030 segment recorded strong participation, contributing 43.62% of turnover at a weighted average yield of 11.19%, indicating sustained investor preference for shorter-dated instruments amid prevailing market uncertainty.
In contrast, activity at the long end of the curve remained subdued. Bonds maturing between 2035 and 2038 accounted for just 4.0% of total turnover, also clearing at an average yield of 12.53%. The limited interest in longer-duration securities reflects lingering concerns about interest rate risk and macroeconomic uncertainty.
The newly issued 7-year bond due in 2033 saw only modest trading, recording turnover of GH¢1.04 million at a weighted average yield of 12.37%, suggesting a cautious reception from the market despite its relatively attractive tenor.
Analysts say the overall pattern underscores a selective investment approach, with market participants prioritising liquidity, flexibility and reduced exposure to long-term risks.
Databank Research expects this trend to persist in the near term, with trading activity likely to remain concentrated in the front-to-belly segment of the curve, while appetite for long-dated bonds continues to lag.
The rebound in turnover signals improving market participation following recent periods of subdued activity, but also highlights a cautious investment climate shaped by evolving macroeconomic conditions and interest rate expectations.
