Bond Market Turnover Surges to GH¢7.16bn
Activity on Ghana’s secondary bond market recorded a sharp rebound, with turnover rising by 343.17 percent week-on-week to GH¢7.16 billion, according to market data.
The strong performance represents the highest level of trading activity recorded since the implementation of the Domestic Debt Exchange Programme (DDEP), signalling renewed investor confidence and improved liquidity conditions in the market.
Trading during the week remained heavily concentrated in medium-term maturities, particularly bonds maturing between 2027 and 2030. This segment accounted for 51.93 percent of total turnover and traded at a weighted-average yield of 11.72 percent, reflecting strong investor preference for shorter- to medium-dated securities.
The 2031-2034 maturity bucket also attracted considerable interest from market participants, accounting for 47.64 percent of total transactions. Bonds within this segment recorded a weighted-average yield of 14.01 percent, indicating continued demand for medium- to longer-term instruments despite prevailing market uncertainties.
However, activity at the far end of the yield curve remained subdued. Bonds maturing between 2035 and 2038 accounted for only 0.42 percent of total turnover, with an average yield of 14.59 percent. The relatively low participation in these longer-dated instruments highlights the cautious stance adopted by investors, many of whom continue to favour shorter maturities amid evolving economic conditions.
Market analysts say the sharp increase in trading volumes points to improving sentiment in the domestic bond market after months of relatively subdued activity following the debt restructuring programme.
According to Databank Research, the surge in turnover was driven largely by improved liquidity within the pension fund industry and the availability of more attractive yields across the market.
“We attribute the sharp pickup in turnover to improved pension-related liquidity and more attractive yield levels,” the research firm stated.
Analysts believe the combination of increased liquidity and favourable yields has strengthened demand for government securities and enhanced market participation.
Databank Research expects trading activity in the secondary market to remain robust in the near term, supported by continued liquidity injections and sustained investor interest.
The rebound in the bond market comes amid improving macroeconomic conditions, declining inflationary pressures and growing confidence in the country’s fiscal and debt management outlook.
Market observers say the strong recovery in secondary market activity is a positive sign for Ghana’s capital market and could help deepen liquidity, improve price discovery and support the broader recovery of the domestic financial sector.
