Bond Market Activity Jumps to GH¢689.63m
Trading activity in Ghana’s secondary bond market surged sharply last week, rising by 70.53 percent to GH¢689.63 million, driven largely by renewed investor appetite for short-term government securities.
According to market data, trading remained heavily concentrated at the short end of the yield curve, particularly maturities within the 2027–2030 range, as investors continued to favour relatively lower-risk, near-term instruments.
The improved demand also had a positive impact on pricing, with general category bond prices strengthening from 96.0 to 98.0, reflecting increased confidence in the fixed-income market.
As a result, the weighted average yield to maturity (YTM) eased slightly to 11.68 percent, down from 11.85 percent in the previous week.
Market analysts attribute the rebound in sentiment partly to recent macroeconomic developments, particularly the announcement of a Staff-Level Agreement (SLA) between Ghanaian authorities and the International Monetary Fund under the country’s ongoing economic reform programme.
According to Databank Research, the agreement has helped to improve investor confidence and reinforce expectations of continued policy stability, thereby supporting activity in the secondary bond market.
Analysts note that while trading volumes increased significantly, market activity remains selective, with investors still cautious about duration risk and broader fiscal outlook uncertainties.
Looking ahead, market participants expect trading activity to remain moderate in the coming weeks, with movements likely to be influenced by end-of-month portfolio rebalancing by commercial banks and institutional investors.
They also anticipate that short-end instruments will continue to dominate trading volumes as investors position themselves for clarity on future monetary policy direction and inflation trends.
Overall, the latest performance suggests a gradual improvement in sentiment within Ghana’s domestic debt market, even as investors maintain a cautious approach to longer-dated securities.
