Fixed Income Market: Bonds plummet by 67.2%
According to the insights provided by GCB Capital Research, the secondary fixed income market in Ghana experienced a marginal increase in aggregate turnover, reaching GH¢1.38 billion.
This represents a week-on-week growth of approximately 3.75%. The growth in turnover was primarily driven by heightened activity in Treasury bills (T-bills), which played a substantial role in shaping the market dynamics.
However, the performance of bonds in the secondary fixed income market diverged significantly from T-bills. The value of bonds traded during the same week saw a substantial decline, plummeting by 67.2% compared to the previous week.
The total value of bonds traded stood at GH¢191 million at the end of the week, accounting for 13.5% of the overall trading volume.
It’s noteworthy that the trading of bonds was largely concentrated in two specific tenors, the Feb-27 and Feb-28. What’s particularly interesting is that these bonds were transacted at significant discounts to their face values, indicating that investors were acquiring these bonds at prices lower than their nominal values.
This suggests a nuanced picture in the fixed income market. While T-bills continued to be a point of attraction for market participants, the bond market experienced a sharp decrease in trading activity, with a focus on specific tenors trading at discounted prices. This information can be indicative of changing investor sentiments and strategies within the fixed income space.
