- Bond Market Records Heavier Trading Amid Mixed Yield Movements
Trading on the Ghana Fixed Income Market accelerated sharply in the week ending October 23, 2026, with aggregate turnover rising by 92.28 per cent as investors increased activity in Domestic Debt Exchange Programme bonds and Treasury bills.
Total securities traded reached GH¢13.75 billion, compared with GH¢7.15 billion in the preceding week. The increase of approximately GH¢6.60 billion marks a substantial improvement in secondary-market activity, although the composition of turnover shows that liquidity remained concentrated in government instruments and a relatively small number of maturities.
The scale of the weekly increase also indicates that institutional portfolio movements, rather than gradual growth in everyday trading, can still reshape reported market liquidity within a short period.
DDEP bonds dominated the market with GH¢9.11 billion in trades, representing 66.27 per cent of total turnover. Activity in the instruments increased by 129.67 per cent from GH¢3.97 billion a week earlier, making them the principal driver of the overall market expansion.
Treasury bill turnover rose by 38.21 per cent to GH¢4.06 billion from GH¢2.94 billion, accounting for another 29.52 per cent of market activity. Together, DDEP bonds and Treasury bills generated 95.79 per cent of all trading, underlining the continued dominance of sovereign securities in Ghana’s fixed-income market.
Sell-buyback trades also recorded significant growth. Turnover in these transactions increased by 143.71 per cent to GH¢551.09 million from GH¢226.13 million. This suggests stronger demand for short-term liquidity management and collateralised financing among market participants during the week.
Trading in newly issued government bonds more than doubled from GH¢5.24 million to GH¢12.47 million, while old government bonds recorded GH¢114,000 after no trades in the preceding week. Despite their high percentage growth, both categories remained marginal contributors to overall turnover.
Corporate securities generated GH¢14.77 million, up 45.25 per cent from GH¢10.17 million. Commercial paper activity, however, fell sharply by 93.68 per cent from GH¢5.13 million to GH¢324,077. Corporate securities and commercial paper together accounted for barely one-tenth of one per cent of total market activity.
The figures illustrate a persistent structural challenge. Ghana’s fixed-income market is liquid mainly where government risk is involved, while private-sector issuers attract limited secondary-market participation. This restricts the market’s capacity to channel long-term savings into corporate investment and leaves institutional portfolios heavily exposed to sovereign instruments.
Within the DDEP segment, trading was concentrated along the middle of the maturity curve. The February 2032 bond recorded GH¢3.14 billion in turnover, equivalent to 34.52 per cent of DDEP bond trading and 22.88 per cent of total market activity.
The February 2030 bond followed with GH¢1.69 billion, while the February 2031 and February 2029 maturities recorded GH¢1.48 billion and GH¢1.25 billion respectively. Combined turnover in these four instruments reached GH¢7.56 billion, representing almost 83 per cent of DDEP bond trading.
Such concentration can provide useful liquidity points for price discovery, enabling investors to enter or exit selected positions more easily. It also means, however, that quoted yield movements outside the most active securities may reflect relatively thin trading and should be interpreted cautiously.
The short February 2027 DDEP bond attracted GH¢868.63 million, up from GH¢672.89 million, but its yield rose sharply by 81 basis points to 11.06 per cent from 10.25 per cent. The combination of higher turnover and a rising yield suggests that increased trading did not translate into stronger pricing for that maturity.
Yield movements across the remainder of the DDEP curve were mixed. The February 2028 yield eased by four basis points to 12.25 per cent, while the February 2029 and February 2030 yields increased by 12 and 10 basis points to 14.12 per cent and 14.33 per cent respectively.
The February 2031 yield declined by nine basis points to 14.43 per cent, while the heavily traded February 2032 instrument edged four basis points higher to 14.50 per cent. The February 2033 yield was unchanged at 14.22 per cent.
At the longer end, yields generally softened. The February 2034 yield fell by 33 basis points to 14.67 per cent, the February 2036 yield declined by 89 basis points to 14.61 per cent, and the February 2038 instrument eased by 18 basis points to 14.57 per cent. The February 2037 yield remained unchanged at 14.93 per cent.
These longer-dated movements must be considered alongside limited turnover. The 2034 and 2036 maturities recorded only GH¢39.40 million and GH¢100 million respectively, while the 2038 bond generated GH¢15.85 million. No trades were recorded in the 2037 instrument within the volume schedule.
The most striking yield change occurred in the new bond maturing in March 2033. Its yield rose by 144 basis points to 14.04 per cent from 12.60 per cent, on turnover of only GH¢12.47 million. The September 2030 new bond recorded no activity and its indicative yield remained at 11.35 per cent.
Investor demand during the week was therefore strong in turnover terms but selective in allocation. The sharp increase in DDEP bond activity suggests that investors are becoming more willing to reposition within the restructured domestic debt market. Yet demand concentrated in a few benchmark maturities rather than spreading evenly across the curve.
Higher turnover is positive because active secondary trading improves liquidity and helps establish market prices. It does not, by itself, mean confidence has been fully restored. Sustained recovery requires consistent settlement, predictable fiscal policy, credible debt management and a broader investor base capable of supporting different maturities.
The near absence of corporate trading also deserves policy attention. Lower government borrowing requirements, improved credit information, market-making support and a stronger pipeline of well-rated issuers could help direct institutional capital towards businesses seeking expansion finance.
In the coming week, investors will watch Treasury auction results, government funding signals and inflation expectations for direction. Attention will also remain on whether the heavier DDEP activity persists or represents temporary portfolio adjustment.
The week’s GH¢13.75 billion turnover demonstrates that liquidity can return quickly when investors find suitable instruments and counterparties. The deeper test is whether Ghana can convert episodic surges into consistent market depth, a smoother yield curve and meaningful financing for both government and productive private enterprise.
