In a disappointing turn of events in the secondary market, a new report from GCB Capital Research has disclosed that the secondary bonds market in Ghana recorded a substantial decline in aggregate trading volume last week, amounting to GH¢1.47 billion.
In all, the volume of bonds sold witnessed a dip of 26.47% week-on-week, with treasury bills dominating the market’s activities.
Meanwhile, one noteworthy bond that garnered substantial attention on the market during the week was the Aug-27 bond with a coupon rate of 10%, offering a maturity period of 4.5 years.
The bond with a maturity period of 4.5 years emerged as the most actively traded instrument, with trading volumes reaching approximately GH¢2.10 million by the close of the trading week.
The dynamics within the secondary bonds market underscored the nuanced fluctuations and preferences of investors, reflecting the broader economic and financial landscape in the country. It remains an area of interest for market participants and observers alike as they track these developments closely.
Upcoming GHS 2.59 billion T-bill Auction
Moreover, market participants have turned their attention to the upcoming GHS 2.59 billion T-bill auction aimed to roll over GH¢2.41 billion in maturities.
According to the insights from GCB Capital Research, Ghana is gearing up for a T-bill auction later this week, with a target gross issuance of GH¢2.59 billion—a notable decrease of 31.23% week-on-week.
The auction will encompass both 91-day and 182-day offerings, aimed at rolling over maturing debts totaling approximately GH¢2.41 billion.
This reduced issuance size is poised to attract substantial investor interest, potentially resulting in oversubscription, albeit at slightly elevated yield levels.
Market observers anticipate that the lower offering size will drive competition among investors, leading to a modest uptick in yields compared to previous auctions.
As Ghana’s financial landscape continues to evolve, these developments in the T-bill market are closely watched by market participants, keen to gauge investor sentiment and the broader economic dynamics at play.
As investors prepare to make decisions that will shape their future investment plans, the forthcoming auction promises to shed light on the nuanced trends shaping Ghana’s debt market.