Ghana’s bond market has staged a rebound, with secondary-market turnover jumping by 94.65% week-on-week to GH¢4.13 billion as investor activity returned strongly across key maturity segments.
The sharp increase in trading marks a significant turnaround in market activity, highlighting renewed appetite for government securities at a time when investors continue to closely monitor yields, interest rates and the direction of Ghana’s fixed-income market.
The latest figures show that trading was concentrated largely in bonds with medium-term maturities, while longer-dated securities remained relatively quiet.
Investors Return as Bond Trading Accelerates
The nearly doubling of turnover provides a strong signal that activity in Ghana’s secondary bond market has picked up considerably.
With turnover rising from the previous week by almost 95%, investors appear to have become more willing to reposition their portfolios and take advantage of prevailing market conditions.
The increase also comes as the newly issued September 2030 government bond attracts significant attention from market participants.
The improved activity suggests that investors are not simply sitting on their holdings. Instead, there is growing movement across the market as institutions assess opportunities along different points of the yield curve.
For dealers and portfolio managers, the rise in turnover could provide greater liquidity and more opportunities to adjust positions without waiting for primary-market issuances.
2031 to 2034 Bonds Lead Market Activity
The strongest concentration of trading was recorded in the 2031 to 2034 maturity segment.
These bonds accounted for 53.75% of total secondary-market turnover, making them the dominant area of activity during the period. The securities traded at an average yield of 13.90%.
The figures underline the continued importance of the belly of the yield curve to investors.
Rather than concentrating heavily on very short-dated or extremely long-dated securities, market participants appear to be finding greater value in the medium-term portion of the curve.
This pattern could reflect investors’ efforts to balance return and duration risks while positioning their portfolios around expectations for interest rates and broader economic conditions.
The strong activity in the segment also means that movements in medium-term government bond yields could remain an important indicator of investor sentiment in the weeks ahead.
2027 to 2030 Segment Also Draws Strong Interest
The 2027 to 2030 maturity segment was another major contributor to trading activity, accounting for 45.06% of total turnover.
The segment recorded an average yield of 12.01%, placing it firmly behind the 2031 to 2034 bonds in terms of market share.
Together, the two maturity segments accounted for more than 98% of total secondary-market activity.
That concentration paints a clear picture of where investors are currently focusing their attention.
The figures suggest that demand is heavily centred on securities offering a combination of relatively attractive yields and manageable maturity profiles.
For investors, such securities can provide an opportunity to lock in returns while avoiding some of the longer-duration risks associated with bonds maturing much further into the future.
Longer-Dated Bonds Remain on the Sidelines
While activity surged across the middle of the curve, bonds maturing after 2035 remained largely overlooked.
These longer-dated securities represented only 1.19% of total secondary-market turnover, despite trading at an average yield of 14.78%.
The limited activity suggests that investors remain cautious about taking on significant duration exposure.
Although the higher average yield may appear attractive, longer-dated bonds are generally more sensitive to changes in interest rates. A shift in market expectations can therefore have a larger impact on their prices.
The subdued trading in this segment indicates that investors may currently prefer securities with shorter or medium-term maturities, where they can retain greater flexibility as market conditions evolve.
New September 2030 Bond Emerges as Market Favourite
One of the biggest developments in the latest trading session was the performance of the newly issued September 2030 bond.
The four-year government bond recorded GH¢320.99 million in secondary-market turnover at a weighted-average yield of 11.94%.
Its turnover represented 7.8% of total secondary-market activity, an impressive showing for a newly issued security.
The strong performance suggests that the bond has quickly attracted the attention of investors and dealers.
Its relatively fresh issuance, four-year maturity and competitive yield appear to be supporting trading interest as participants assess where it fits within their fixed-income portfolios.
The bond’s performance could also help sustain overall market liquidity if investor interest continues in the coming weeks.
Databank Sees Activity Staying Firm
Databank Research expects secondary-market activity to remain firm, supported by continued trading interest in the newly issued four-year Government of Ghana bond.
That outlook could keep attention firmly focused on the fixed-income market as investors search for opportunities amid changing monetary and economic conditions.
The latest GH¢4.13 billion turnover therefore represents more than just a weekly jump in trading volume. It points to renewed engagement with Ghana’s government securities market.
If the momentum continues, the secondary bond market could see further increases in liquidity, particularly around the 2027 to 2034 maturity range.
Investors may now appear to have found their preferred hunting ground. The belly of the curve is attracting the bulk of the action, while the new September 2030 bond is quickly establishing itself as one of the market’s notable trading instruments.
After a period of softer activity, Ghana’s bond market is once again showing signs of life, with GH¢4.13 billion changing hands in a single week and investor attention firmly back on government securities.
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