Bond Market Turnover Falls to GH¢2.08bn

Activity on Ghana’s secondary bond market eased over the past week, with aggregate turnover declining by 8.49 percent week-on-week to GH¢2.08 billion, reflecting a moderation in trading momentum amid evolving liquidity conditions.

Market participation remained heavily concentrated in the belly of the yield curve, underscoring investors’ preference for intermediate-term instruments. Bonds within the 2031–2034 maturity bracket accounted for a dominant 72.8 percent of total traded volumes. These securities cleared at a weighted-average yield of 13.23 percent, suggesting sustained appetite for mid-duration exposure as investors balance return expectations with risk considerations.

The 2027–2030 maturities represented the second most active segment of the curve, capturing 26 percent of total volumes during the review period. These instruments traded at a weighted-average yield of 12.60 percent. The relatively strong participation in this segment indicates continued demand for shorter-to-medium tenors, particularly among portfolio managers seeking to maintain flexibility in a market characterised by shifting rate expectations.

In contrast, trading activity at the long end of the curve remained notably thin. Bonds maturing between 2035 and 2038 contributed just 1.2 percent of total turnover, albeit at a higher weighted-average yield of 14.86 percent. Despite the yield premium offered by longer-dated securities, investor participation in that segment appears constrained by caution over duration risk and uncertainty surrounding future macroeconomic conditions.

The distribution of volumes across the curve highlights a market environment where investors are selectively positioning rather than aggressively extending duration. Elevated liquidity levels within the financial system may also be tempering urgency, as market participants weigh the relative attractiveness of current yields against broader portfolio objectives.

According to Databank Research, bond market activity is expected to remain relatively subdued in the near term. The firm notes that ample liquidity and comparatively less attractive yields are dampening incentives for investors to significantly increase exposure to longer-tenor instruments.

However, Databank Research anticipates that selective flows could materialise as the month draws to a close, with portfolio managers likely to rebalance holdings and adjust positions in line with allocation targets and risk management strategies.

Overall, the week’s performance points to a cautious but stable secondary market, with trading patterns reflecting measured portfolio adjustments rather than broad-based shifts in sentiment. Market participants will continue to monitor liquidity dynamics, yield movements, and macroeconomic signals for clearer direction in the weeks ahead.