Bond Market Turnover Falls GH¢404.41m
Activity on Ghana’s secondary bond market weakened sharply last week, with total turnover declining by 67.70 per cent week-on-week to GH¢404.41 million, reflecting a more cautious investor stance ahead of key monetary policy decisions.
Market data showed that trading activity was heavily concentrated at the short-to-medium end of the yield curve, particularly in the 2027 to 2030 maturities, which accounted for 98.51 per cent of total turnover.
These instruments traded at a weighted-average yield of 11.05 per cent, indicating continued investor preference for relatively shorter-dated government securities amid uncertainty over near-term interest rate direction.
In contrast, activity in the 2031 to 2034 segment remained minimal, contributing just 1.49 per cent of total turnover at an average yield of 12.64 per cent.
Within this segment, trading was largely driven by the newly issued 7-year 2033 bond, which recorded GH¢5.99 million in transactions across two trades at a weighted-average yield of 12.47 per cent.
The long end of the curve, particularly the 2035 to 2038 maturities, remained largely inactive, underscoring persistent reluctance among investors to take on longer-term duration risk.
The subdued performance reflects a broader pattern of selective participation in the fixed-income market as investors continue to reassess macroeconomic conditions and monetary policy expectations.
Analysts say market sentiment is being shaped by anticipation of policy signals from the upcoming Monetary Policy Committee meeting of the Bank of Ghana, scheduled for May 20, 2026.
Research analysts at Databank Group noted that secondary market activity is likely to remain uneven in the near term as investors await clearer policy direction.
According to the firm, market participants are expected to maintain a selective trading approach, particularly as uncertainty persists around inflation dynamics, interest rate expectations and broader macroeconomic conditions.
The recent decline in turnover also highlights ongoing sensitivity in Ghana’s bond market, where investor decisions continue to be influenced by monetary policy guidance, fiscal developments and liquidity conditions within the financial system.
Despite recent improvements in macroeconomic stability, analysts say caution remains the dominant theme as investors position themselves ahead of potential shifts in policy direction from the central bank.
Market watchers expect trading activity to pick up once greater clarity emerges from the MPC’s policy announcement and updated economic outlook.
