Secondary Bond Market drops 55% on investor caution

Trading activity on the secondary bond market sharply declined last week, plunging by 54.58 per cent week-on-week to GHS794 million, as weak buying interest weighed on market sentiment.

Market data showed that transactions were largely concentrated in General Category Bonds, though overall turnover remained subdued.

Bid and offer interest was mainly focused on medium to long-term maturities, specifically between February 2027 and February 2031.

The distribution of trades revealed that the 2027 to 2030 maturities accounted for 32 per cent of overall volumes, settling at a weighted average Yield-To-Maturity (YTM) of 15.34 per cent.

In contrast, the 2031 to 2038 papers dominated activity, representing 68 per cent of the market share at an indicative YTM of 16.25 per cent.

Analysts noted that the sharp dip in volumes reflects subdued appetite from investors, who remain cautious amid broader macroeconomic and fiscal concerns.

Liquidity challenges and lingering uncertainties around the government’s debt management strategy are also dampening activity in the fixed-income space.

Market watchers expect trading volumes to remain relatively muted in the near term unless investor sentiment improves, supported by stronger fiscal signals or policy clarity.