Bond Market Activity Surges as Turnover Jumps 189% to GH¢4.61bn
By Praisebell Rosemond Larbi
Activity in the secondary bond market strengthened significantly over the week, reflecting improved investor participation and sustained positive sentiment.
Total turnover surged by 189.55 per cent week-on-week to GH¢4.61 billion, marking one of the strongest weekly performances in recent periods. The sharp increase underscores heightened trading activity, largely driven by portfolio rebalancing among institutional investors.
Despite the overall rise in volumes, liquidity remained narrowly concentrated in a few benchmark instruments. The February 2031 bond dominated market activity, accounting for GH¢1.53 billion of the total turnover. Its prominence highlights continued investor preference for relatively liquid and actively traded benchmark securities.
Investor demand remained heavily skewed toward the mid-curve, particularly within the 2027 to 2030 maturity segment. This portion of the curve captured 60.9 per cent of total volumes traded during the week, with transactions executed at a weighted-average yield of 15.00 per cent. The strong interest in this segment reflects investors’ ongoing search for a balance between yield optimisation and duration risk management.
Trading activity beyond the core mid-curve was more selective. Bonds within the 2031 to 2034 maturity range accounted for 35.5 per cent of total volumes, trading at a slightly lower weighted-average yield of 14.97 per cent. This suggests cautious extension along the curve by investors willing to lock in yields amid improving macroeconomic and market conditions.
In contrast, the long end of the curve remained largely inactive. Securities within the 2035 to 2038 maturity range contributed just 3.7 per cent of total market turnover, trading at a higher weighted-average yield of 16.01 per cent. The limited activity at the long end points to continued investor caution around longer-dated exposures, likely reflecting lingering concerns over inflation dynamics and fiscal sustainability risks.
Commenting on market prospects, Databank Research said it expects secondary market activity to remain elevated in the coming week. According to the firm, ongoing portfolio rebalancing by investors, coupled with sustained positive market sentiment, is likely to continue supporting trading volumes across the curve.
