Bond Market Turnover Drops to GH¢1.25bn
Activity on Ghana’s secondary bond market weakened significantly last week, with aggregate turnover declining by 46.60 per cent week-on-week to GH¢1.25 billion as investors adopted a cautious stance ahead of the upcoming Monetary Policy Committee meeting of the Bank of Ghana.
Market data showed that trading activity remained heavily concentrated within the short-to-medium end of the yield curve, particularly the 2027 to 2030 maturities, which accounted for 88.77 per cent of the total market turnover.
These instruments traded at a weighted-average yield of 11.25 per cent, reflecting continued investor preference for relatively shorter-dated government securities amid prevailing market uncertainty.
The 2031 to 2034 maturities also recorded some level of activity, contributing 11.23 per cent of total turnover at an average yield of 12.35 per cent.
However, activity at the long end of the curve, especially the 2035 to 2038 maturities, remained subdued, indicating persistent investor caution toward longer-term exposure despite recent improvements in macroeconomic indicators.
The newly issued 7-year 2033 bond posted modest activity on the secondary market. A total of GH¢140.60 million was traded across 18 transactions at a weighted-average yield of 12.35 per cent.
Analysts say the current market behaviour suggests investors are continuing to prioritise liquidity and risk management while awaiting clearer signals on interest rate direction and broader economic conditions.
Research analysts at Databank Group indicated that trading activity is likely to remain concentrated within the front-to-belly section of the curve in the near term.
According to the firm, investor positioning is expected to remain conservative ahead of the Monetary Policy Committee meeting scheduled for May 20, 2026, where the central bank is widely expected to maintain the policy rate at current levels.
Databank Research, however, noted that recent improvements in Ghana’s sovereign credit profile could help strengthen investor confidence in the bond market.
The firm pointed to the decision by Fitch Ratings to upgrade Ghana’s sovereign credit rating from “B-” to “B” with a Positive Outlook, describing the move as a potential boost to market sentiment and foreign investor appetite for Ghanaian debt instruments.
The latest bond market performance comes as investors continue to monitor inflation trends, fiscal consolidation efforts and monetary policy developments for indications of future interest rate movements and economic stability.
