Bond Market Turnover Falls to GH¢2.91bn

Activity on Ghana’s secondary bond market declined slightly over the past week, with total turnover falling by 2.58 percent week-on-week to GH¢2.91 billion, according to the latest market update from Databank Research.

The decline reflects a modest slowdown in trading volumes, although investor activity remained concentrated in the medium-term segment of the yield curve.

Market data showed that trading was largely focused on bonds with maturities between 2027 and 2030, which accounted for 52.6 percent of total traded volumes during the week. These securities recorded a weighted-average yield of 11.02 percent, indicating sustained investor interest in medium-term government debt instruments.

The 2031–2034 maturity segment followed closely behind, capturing 42.5 percent of market activity with a weighted-average yield of 12.74 percent.

Together, these two maturity segments accounted for more than 95 percent of total market turnover, underscoring investors’ continued preference for mid-range government bonds amid current market conditions.

In contrast, activity at the longer end of the yield curve remained relatively subdued.

Bonds with maturities between 2035 and 2038 contributed only 4.9 percent of total turnover, despite offering a weighted-average yield of 12.71 percent. Analysts say the relatively low participation in longer-dated securities reflects investor caution and continued uncertainty within the domestic fixed-income market.

Market Activity Expected to Remain Soft

According to Databank Research, trading activity on the secondary bond market is likely to remain relatively soft in the near term as investors continue to assess evolving market conditions.

However, the research firm expects activity to pick up in the coming weeks following the expiration of restrictions linked to Ghana’s debt restructuring programme.

“However, with the expiration of the three-year DDEP restriction, we anticipate an announcement on the resumption of bond issuances in the coming weeks,” the report noted, referring to the Domestic Debt Exchange Programme (DDEP).

The anticipated resumption of government bond issuance is expected to inject fresh liquidity into the market and provide new investment opportunities for institutional investors such as pension funds, banks and asset managers.

Potential Impact on Yields

Market analysts believe the return of new bond issuances could help revive activity on the secondary market while also supporting a gradual adjustment in yields across the yield curve.

The reintroduction of long-term government securities may also help deepen Ghana’s domestic bond market by offering investors a broader range of instruments with varying maturities.

For now, however, trading patterns suggest that investors remain cautious, favouring bonds within the medium-term range where perceived risks are relatively lower.

The bond market remains a critical component of Ghana’s financial system, providing government with a key source of domestic financing while also offering investors opportunities to manage portfolios and generate returns through fixed-income securities.