Bond Market Turnover Jumps 66% to GH¢4.10bn
By Praisebell Rosemond Larbi
Activity in Ghana’s secondary bond market strengthened significantly this week, with total turnover surging by 66.42 per cent week-on-week to GH¢4.10 billion, reflecting renewed investor confidence and improving liquidity conditions.
Market data show that trading remained concentrated in a few benchmark securities, with the February 2030 government bond once again emerging as the market’s key liquidity anchor. The paper accounted for GH¢1.01 billion of total executed trades, reaffirming its status as the most actively traded and preferred instrument for both institutional investors and portfolio managers seeking depth and price discovery.
Overall trading activity continued to cluster around the mid-section of the yield curve. Bonds maturing between 2027 and 2030 dominated market turnover, representing 75.5 per cent of total trades during the week. This segment recorded a weighted average yield of 14.77 per cent, underscoring sustained demand for medium-term securities as investors balance yield considerations with duration risk.
Further along the curve, longer-dated bonds also saw moderate participation. Securities with maturities between 2031 and 2034 accounted for 24.3 per cent of total market activity, trading at a higher weighted average yield of 15.43 per cent. The relatively higher yields on these longer tenors reflect prevailing risk pricing and investors’ cautious stance toward extended maturities, even as market sentiment improves.
Analysts say the sharp rise in turnover signals growing confidence among investors, supported by easing liquidity conditions in the financial system and expectations of greater stability in the domestic fixed income market. The continued preference for benchmark bonds, particularly the February 2030 paper, also points to a market that is gradually rebuilding depth following earlier disruptions.
Looking ahead, Databank Research expects some moderation in trading activity as the year draws to a close. The firm notes that seasonal factors, including bank balance sheet adjustments and reduced participation during the festive period, are likely to temper volumes in the coming weeks.
Nevertheless, Databank remains cautiously optimistic about the broader outlook for the bond market. “We anticipate the market to remain constructive, supported by improving liquidity conditions and growing investor confidence amid the anticipation of the reopening of the bond market,” the research firm stated.
Market participants will be closely watching developments into the new year, particularly policy signals and liquidity trends, which are expected to shape demand, yields and overall market direction.
