Trading activity on Ghana's secondary bond market slowed last week, with total turnover declining by 17.27% week-on-week to GHS475 million.

The decline follows the previous week's strong performance and was largely attributed to reduced market participation during the holiday period, which resulted in lower trading volumes across the market.

According to Databank Research, investors continued to show a preference for shorter-term government securities, reflecting a cautious approach amid changing yield conditions.

Bonds maturing between 2027 and 2030 dominated trading activity, accounting for 86% of total market volumes. These instruments closed the week with a weighted average Yield-To-Maturity (YTM) of 11.27%.

Meanwhile, bonds in the medium- to long-term segment, covering maturities between 2031 and 2038, represented the remaining 14% of total trades. These securities were exchanged at a weighted average YTM of 12.34%.

Databank Research noted that the softer market turnover was influenced by the holiday break and a gradual rise in yields, which encouraged investors to concentrate on shorter-duration instruments.

Looking ahead, the research firm expects trading activity to remain cautious in the coming weeks as market participants await Ghana's May 2026 inflation data, scheduled for release on Wednesday.

The inflation announcement is expected to play a key role in shaping investor expectations for interest rates and bond yields, while also influencing trading strategies in the fixed-income market.

Market analysts believe investors will continue to monitor economic indicators closely as they assess future opportunities in the bond market.