Bond market turnover falls sharply by 66% to GHS559 million

Activity on Ghana’s secondary bond market has slowed significantly, with total turnover dropping by 66.88% week-on-week to GHS559 million.

This means the total value of bonds traded during the period was much lower compared to the previous week, reflecting reduced participation from investors and traders in the market.

Market analysts say trading was mainly concentrated in medium-term government bonds, especially those maturing between 2027 and 2034. This segment accounted for just over half of total transactions, showing that investors currently prefer relatively shorter to medium-term investments rather than long-term commitments.

The 2027 to 2030 range also recorded notable activity, contributing a significant portion of trades. However, bonds maturing between 2035 and 2038 saw very little to no trading activity. This points to reduced investor interest in long-term instruments, possibly due to uncertainty around future interest rates and market conditions.

A newly issued 7-year bond maturing in 2033 attracted limited demand, recording a turnover of GHS15.52 million at an average yield of about 12.10%.

Despite the sharp decline in overall trading activity, analysts expect some recovery in the coming week. They believe end-of-month portfolio adjustments by institutional investors could help increase liquidity and boost market turnover.

Overall, the latest figures reflect a cautious mood in Ghana’s bond market, with investors taking a more selective approach as they respond to changing economic conditions.