Trading activity on Ghana’s secondary bond market recorded a sharp increase last week, rising by 70.53% week-on-week to GHS689.63 million, reflecting renewed investor confidence in government securities.

According to market analysts, most of the trading activity was concentrated at the shorter end of the yield curve, particularly in bonds maturing between 2027 and 2030. This suggests that investors continue to prefer shorter-dated instruments amid expectations of improving macroeconomic conditions.

Bond prices in the General Category also strengthened during the period. Average prices climbed from 96.0 to 98.0, indicating stronger demand for government bonds on the secondary market. As prices improved, the weighted-average yield to maturity (YTM) declined slightly to 11.68% from 11.85% recorded previously.

Research firm Databank Group attributed the positive market performance to improving investor sentiment following the announcement of a Staff-Level Agreement (SLA) between the Government of Ghana and the International Monetary Fund.

According to Databank Research, the agreement has boosted confidence among investors, who see it as a sign of continued economic reforms and fiscal discipline under Ghana’s IMF-supported programme.

Analysts, however, expect trading activity in the secondary bond market to remain modest in the coming weeks. They believe market activity will mainly be influenced by end-of-month portfolio rebalancing by banks and other institutional investors.

The recent rise in secondary market activity signals growing optimism within Ghana’s fixed-income market as investors closely monitor economic developments and policy direction.