Bond market turnover drops 37%
By Praisebell Rosemond Larbi
Activity on the secondary bond market slowed last week, with total turnover declining by 36.73 per cent week-on-week to GHS1.54 billion, down from GHS2.43 billion the previous week.
According to data from the market, the slowdown reflects a cautious investor mood as market participants await fiscal guidance from the forthcoming 2026 Budget Statement, which is expected to outline the government’s borrowing strategy and economic outlook for next year.
Trading during the week was largely concentrated in the February 2030 bond, which recorded the highest activity, contributing GHS464.80 million in traded volumes.
The 2027 to 2030 bonds continued to anchor overall market activity, accounting for 71.2 per cent of total volumes traded, with a weighted average yield of 15.30 per cent. These medium-term instruments remain the preferred choice for most investors seeking liquidity and relatively stable returns.
The 2031 to 2038 maturities also saw notable participation, contributing 29 per cent of total traded volumes at a weighted average yield of 15.93 per cent, indicating continued investor interest in longer-term government securities despite prevailing uncertainties.
Analysts at Databank Research noted that market sentiment was subdued as fund managers adopted a wait-and-see approach, holding back on large transactions until there is clarity on the government’s fiscal and debt management plans for 2026.
“We anticipate a modest uptick in market activity as asset managers rebalance portfolios ahead of month-end. Investor participation could improve if the upcoming budget signals stability in debt issuance and fiscal consolidation,” Databank stated.
Despite the slowdown, yields have remained broadly stable across most maturities, reflecting investor confidence in the government’s commitment to maintaining macroeconomic stability and debt sustainability under the ongoing IMF-supported programme.
