Bond Market Turnover Falls to GH¢1.56bn
Activity on Ghana’s secondary bond market recorded a sharp slowdown during the week, with total turnover declining by 71.11 percent to GH¢1.56 billion, reflecting reduced trading momentum across key maturities.
Market data shows that trading remained largely concentrated in medium-term instruments, particularly bonds within the 2031 to 2034 maturity bracket, which accounted for 49.83 percent of total turnover. These securities traded at an average yield of 14.14 percent, indicating continued investor preference for relatively higher-yielding instruments along the curve.
The 2027 to 2030 segment also attracted significant interest, representing 46.26 percent of total trades at a weighted average yield of 11.75 percent. This suggests that investors continue to position themselves within the front-to-belly segment of the yield curve, where returns remain comparatively attractive while carrying moderate duration risk.
In contrast, activity at the long end of the curve remained subdued. Bonds maturing beyond 2035 accounted for just 3.91 percent of total turnover, trading at an average yield of 14.64 percent. Analysts attribute the limited participation in this segment to cautious investor sentiment toward longer-dated securities amid evolving macroeconomic conditions.
According to Databank Research, the sharp decline in overall market turnover is partly linked to the recent repricing of Treasury bill yields, which has improved the attractiveness of short-term government securities relative to longer-duration bonds. This shift has prompted some investors to adjust their portfolios in favour of instruments with lower duration risk and quicker liquidity cycles.
Despite the week-on-week decline, market analysts believe the slowdown may be temporary. Databank Research expects a rebound in secondary market activity in the coming week, driven by portfolio rebalancing by fund managers as they position themselves ahead of the close of the first half of 2026.
The firm further noted that such periodic moderation in trading activity is consistent with typical market cycles, particularly during periods of yield adjustments across different segments of the fixed-income market.
Overall, while turnover has weakened significantly in the short term, analysts maintain that underlying investor interest in government securities remains intact, supported by relatively high yields and ongoing adjustments in monetary policy expectations.
