Bond Market Activity Slows to GH¢475m
Trading activity on Ghana’s secondary bond market declined by 17.27 per cent week-on-week to GH¢475 million, following the previous week’s stronger performance.
According to Databank Research, the moderation in turnover was largely influenced by reduced market participation during the holiday period, which slowed trading momentum across the fixed income market.
Despite the decline in overall activity, investors continued to show strong preference for shorter-duration government bonds, particularly securities maturing between 2027 and 2030.
The shorter end of the yield curve accounted for about 86 per cent of total market volumes traded during the week and closed at a weighted average Yield-To-Maturity (YTM) of 11.27 per cent.
Meanwhile, bonds within the medium-to-longer tenor segment, covering maturities between 2031 and 2038, contributed the remaining 14 per cent of traded volumes.
The belly and tail ends of the curve, specifically bonds maturing between 2031 and 2034 as well as 2035 and 2038, traded at a weighted average YTM of 12.34 per cent.
Analysts say investor appetite remained concentrated on shorter-term instruments amid expectations of possible movements in inflation and interest rates in the coming weeks.
Databank Research noted that the softer turnover reflected cautious positioning by market participants, with many investors preferring to reduce duration risk ahead of key macroeconomic data releases.
“We believe softer week-on-week turnover was driven by the holiday period, with participants tilting towards shorter-duration instruments amid a gradual uptick in yields,” the report stated.
The development comes as investors closely monitor inflation trends and the direction of monetary policy following recent easing measures by the Bank of Ghana.
Market analysts expect activity on the secondary bond market to remain relatively cautious in the near term as investors await the release of Ghana’s May 2026 inflation figures.
The inflation data, expected this week, is likely to influence investor sentiment and shape expectations regarding future interest rate movements and yields across the fixed income market.
The outcome could also guide portfolio positioning by banks, pension funds, asset managers and other institutional investors seeking to balance returns against inflation and interest rate risks.
Recent improvements in macroeconomic conditions, including easing inflationary pressures, relative exchange rate stability and improved investor confidence, have helped support activity on Ghana’s domestic debt market in recent months.
However, analysts say uncertainty surrounding global commodity prices, fuel costs and external economic developments continue to influence investor behaviour and market expectations.
The secondary bond market remains an important component of Ghana’s domestic financial system, providing liquidity and investment opportunities for institutional and retail investors while supporting government financing operations.
