Ghana’s Domestic Debt Exchange Programme (DDEP) securities could become an increasingly important force in the country’s fixed income market as investors continue to concentrate trading activity on restructured government bonds, according to Mr. Isaac Kwasi Mensah, a Financial Analyst and Portfolio Manager at SIC Financial Services Limited .
In an exclusive interview with The Vaultz News, Mr. Isaac Kwasi Mensah offered his interpretation of the latest trading activity on the Ghana Fixed Income Market (GFIM), where total transactions reached GH¢2.54 billion on Friday, August 21, 2026.
The session recorded GH¢2.5449 billion in total market volume across 1,159 transactions. DDEP bonds accounted for GH¢1.4193 billion, representing approximately 55.77% of total activity.
Treasury bills followed with GH¢929.44 million, while sell/buy-back transactions involving government notes and bonds amounted to GH¢196.15 million.
Mr. Isaac Kwasi Mensah noted that the figures should not simply be viewed as another daily trading statistic.
“The most important message from this trading session is the dominance of DDEP securities. When more than half of the market volume is concentrated in restructured government bonds, it tells us that investors are actively positioning themselves around these instruments. That has implications for liquidity, pricing and portfolio allocation.”
Mr. Isaac Kwasi Mensah
DDEP Bonds Take Centre Stage
According to the Portfolio Manager, the concentration of trading in DDEP securities reflects the continued transformation of Ghana’s sovereign debt market following the implementation of the Domestic Debt Exchange Programme.
He argued that investors are gradually developing clearer preferences for specific securities along the restructured yield curve.
“We should not expect every DDEP bond to trade with the same level of liquidity. Investors will naturally gravitate toward instruments that provide the combination of maturity, yield, pricing and liquidity that fits their portfolios.”
Mr. Isaac Kwasi Mensah
The February 2030 DDEP security emerged as one of the strongest performers in terms of trading activity, recording approximately GH¢379.48 million when outright and sell/buy-back transactions were combined.
In the outright market, it recorded GH¢309.64 million across 12 trades, closing at a yield of 14.17% and a price of about GH¢85.59.
Mr. Isaac Kwasi Mensah described this activity as an important indication of where market participants may be finding value.
“The February 2030 bond is particularly interesting because its trading volume suggests that investors are willing to transact meaningfully around that point on the curve. That does not automatically mean the bond is undervalued, but it demonstrates that the instrument has attracted substantial market attention.”
Mr. Isaac Kwasi Mensah
Investors Could Be Positioning for the Long Term
The analyst further suggested that the heavy activity in selected DDEP instruments could reflect strategic positioning rather than short-term trading alone.
“Investors are increasingly looking beyond immediate returns and considering the overall risk-return profile of government securities,” he said.
The February 2031 DDEP bond also recorded significant activity, with GH¢282.93 million traded across 33 transactions. It closed at a yield of 14.45% and a price of approximately GH¢82.27.
The February 2027 security recorded GH¢280.17 million, while the February 2029 and February 2032 securities recorded GH¢198.04 million and GH¢186.93 million respectively.
“When you see substantial volumes spread across several maturities, it suggests that investors are not simply chasing one security. They are assessing different points along the curve and making decisions based on their liquidity needs, duration preferences and expectations about future interest rates.”
Mr. Isaac Kwasi Mensah
What the Yield Curve Could Signal
For Mr. Kwasi Mensah, the distribution of trading activity across the DDEP curve could become particularly important for investors attempting to anticipate future market movements.
He noted that yields, bond prices and investor expectations remain closely connected.
“If expectations around inflation and monetary policy continue to evolve, the pricing of these securities will also respond. Investors who understand the relationship between yield movements and bond prices will be better positioned to identify opportunities and manage risks.”
Mr. Isaac Kwasi Mensah
He added that the current concentration of liquidity could eventually encourage more trading in other DDEP securities if investor confidence and market participation improve.
“Liquidity tends to attract liquidity,” Mr. Kwasi Mensah noted. “Once investors know that certain securities can be bought or sold relatively efficiently, those instruments become even more attractive to institutional participants.”
Treasury Bills Still Matter
Despite the dominance of DDEP bonds, Mr. Mensah cautioned against overlooking Treasury bills.
Treasury bills accounted for approximately 36.52% of total market volume during the session, making them the second-largest component of activity.
“The Treasury bill numbers tell us that there is still significant demand for shorter-term instruments. Not every investor wants to lock funds into longer-duration securities. Some participants require flexibility, capital preservation and shorter investment horizons.”
Mr. Isaac Kwasi Mensah
He said the coexistence of strong DDEP and Treasury bill activity indicates that Ghana’s fixed income market is serving different investment strategies simultaneously.
A Potential New Phase for Ghana’s Bond Market
On the outlook, Mr. Isaac Kwasi Mensah believes DDEP securities could play an even larger role in determining the direction of Ghana’s secondary bond market.
“The DDEP fundamentally changed the structure of Ghana’s domestic debt market. The next stage is about how these restructured securities trade, how liquidity develops and how investors price risk. I believe DDEP bonds could increasingly become the reference point for understanding Ghana’s fixed income market.”
Mr. Isaac Kwasi Mensah
He also urged investors to avoid interpreting one trading session in isolation.
“Market participants should focus on trends rather than individual sessions,” Mr. Mensah said, stressing that sustained trading volumes, yield movements and transaction frequency would provide a stronger indication of market direction.
Expert Outlook
The August 21 trading figures therefore offer a significant snapshot of investor activity in Ghana’s fixed income market. With DDEP securities accounting for more than half of total reported volume, their importance to secondary-market trading appears firmly established.
According to Mr. Isaac Kwasi Mensah, the bigger question is whether this concentration will translate into deeper liquidity and stronger price discovery across the broader government bond market.
“Ghana’s fixed income market is entering an important period. If liquidity continues to deepen and investors become more comfortable trading DDEP securities, these instruments could drive market development for years to come. The opportunity is significant, but investors must remain disciplined about pricing, duration and risk.”
Mr. Isaac Kwasi Mensah
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