Ghana’s secondary bond market continued its impressive run, extending a wave of positive sentiment that has been building steadily over recent trading sessions.
The market recorded a significant rise in turnover, reaching GH¢2.47 billion. This represents a strong 54.21 percent increase week on week, signaling heightened investor confidence and improving liquidity conditions across the market.
The latest performance indicates that the bond market is becoming more attractive to both institutional and retail investors seeking favourable returns and stable fixed-income opportunities. The rising activity is also a reflection of improved macroeconomic stability and higher engagement among investors who are becoming more responsive to maturities offering strong risk-reward trade-offs.
A large portion of the market’s turnover was driven by the February 2029 paper, which recorded an impressive GH¢815.94 million worth of trades. This security has stood out as one of the most actively traded instruments on the secondary market, drawing strong attention from investors looking to secure higher yielding assets with manageable risk exposure.
The performance of the 2029 instrument further highlights the growing appetite for medium-term bonds. Investors have shown a preference for securities with predictable return profiles and strong liquidity, positioning the 2029 maturity as a focal point of weekly trading activity.
2027 to 2030 Segment Anchors Market Activity
Beyond the standout performance of the February 2029 bond, the broader 2027 to 2030 maturity segment played a crucial role in anchoring market activity. This segment accounted for an impressive 87.6 percent of total turnover, driven by strong investor patronage and a weighted average yield of 14.54 percent.
The dominance of this maturity band suggests that investors continue to prioritize instruments that offer competitive yields within a relatively moderate duration. This preference also aligns with expectations of steady economic conditions and increasing clarity in Ghana’s medium-term fiscal outlook.
The elevated interest in the 2027 to 2030 maturities reflects a strategic shift among investors who are actively positioning themselves to balance yield opportunities with the need to manage duration risk effectively.
Rising Interest in 2031 to 2034 Maturities
While the 2027 to 2030 segment maintained its strong hold on overall trading, the 2031 to 2034 maturities registered notable traction over the week. These bonds attracted 12.4 percent of total trades, with a weighted average yield of 15.11 percent.
The higher yield levels offered by these instruments added to their appeal, especially among yield-driven investors seeking longer-term returns. The rise in activity suggests that confidence in longer-dated maturities is gradually strengthening as market conditions improve and investors become more comfortable with taking on extended duration exposure.
The increased demand in the 2031 to 2034 bonds represents a healthy diversification in investor interest, complementing the robust performance of shorter maturities and enhancing overall market depth.
Muted Interest in 2035 to 2038 Segment
In contrast to the positive engagements across shorter and medium-term maturities, the 2035 to 2038 segment remained relatively quiet throughout the week. Investor participation in this band was notably low, indicating limited enthusiasm for longer-dated bonds despite the attractive yields typically associated with such maturities.
The hesitation may be attributed to concerns over long-term economic visibility, inflation uncertainties, or cautious positioning strategies ahead of potential market adjustments. Investors appear to be prioritizing liquidity and near-term returns, making shorter maturities more appealing in the current environment.
Looking forward, analysts expect the prevailing positive momentum in the bond market to continue. Improved liquidity conditions and sustained investor engagement are likely to drive further activity across key maturities.
Investors are expected to remain active in segments that offer strong liquidity and attractive risk-reward dynamics. The 2027 to 2030 and the 2031 to 2034 bonds are likely to remain highly patronised as the market maintains its bullish posture.
The ongoing performance of the secondary bond market highlights a favourable outlook for the fixed-income space as investors continue to adjust their strategies in response to improving economic indicators and market stability.
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