Bond Market Rebounds Strongly as Turnover Surges
By Praisebell Rosemond Larbi
Ghana’s secondary bond market recorded a dramatic recovery this week, with total turnover rising sharply by 4179.25% to GH¢1.599 billion, up from GH¢37.37 million the previous week. The strong rebound reflects renewed investor confidence and improved liquidity conditions across the market.
Trading activity was dominated by the February 2032 bond, which emerged as the most actively traded paper for the week, accounting for GH¢475.29 million of total transactions. Analysts noted that the surge in demand for this particular instrument underscores sustained investor appetite for medium-term government securities.
The 2031–2034 maturity segment remained the main anchor of the market. It captured 77% of total turnover and cleared at a weighted-average yield of 15.68%, reinforcing its status as the preferred investment window for institutional investors seeking stable returns.
The 2027–2030 maturities also attracted moderate investor interest. This segment represented 13.1% of weekly trades and recorded a weighted-average yield of 15.32%, as investors balanced short- to medium-term exposure in anticipation of further market movements.
Trades within the 2035–2038 bucket accounted for 9.9% of market activity, clearing at a weighted-average yield of 15.84%. Market watchers noted that interest in this longer-dated segment has steadily firmed as confidence in the macroeconomic outlook improves.
In its weekly market update, Databank Research projected that trading volumes would remain strong this week, driven by enhanced liquidity and renewed investor engagement following last week’s impressive recovery. The firm added that investor sentiment is likely to be shaped by expectations around the next IMF disbursement, which could provide additional fiscal support and deepen market stability.
Analysts also believe that the recent Monetary Policy Rate (MPR) cut has strengthened confidence in the fixed-income market, improving pricing dynamics and stimulating demand across key securities. As the economic environment stabilises, investors are expected to continue recalibrating their portfolios to take advantage of favourable yield movements.
