- Ghana Fixed-Income Trading Increases, But Demand Remains Concentrated in Short-Term Debt
Trading activity on the Ghana Fixed Income Market increased by 9.3 per cent to GH¢6.94bn in the week ending September 25, driven by a sharp rise in Treasury bill transactions as investors concentrated liquidity at the short end of the government yield curve.
Total turnover increased from GH¢6.35bn in the previous week, with Treasury bills accounting for GH¢4.83bn, or 69.5 per cent of all securities traded.
Treasury bill turnover rose by 50.7 per cent from GH¢3.2bn, providing the principal source of the market’s week-on-week expansion.
The figures indicate that the increase in overall activity did not represent a broad-based strengthening of demand across the fixed-income market. Instead, investors directed a growing share of funds into short-term government instruments, where exposure to duration and price volatility is relatively limited.
Trading in Domestic Debt Exchange Programme bonds declined by 21.1 per cent to GH¢1.55bn from GH¢1.97bn. DDEP securities nevertheless remained the second-largest market segment, accounting for 22.4 per cent of total turnover.
Sell-buy-back transactions fell more sharply, declining by 52.2 per cent to GH¢530.1mn from GH¢1.11bn.
Turnover in old government bonds dropped by 44.5 per cent to GH¢496,772, while activity in new government bonds increased by 14.9 per cent to GH¢5.47m.
Corporate securities remained a marginal part of the market. Turnover fell by 61.1 per cent to GH¢25.22mn from GH¢64.83mn, representing only 0.36 per cent of total fixed-income activity.
Government securities, including Treasury bills, DDEP bonds, old and new government bonds and sell-buy-back transactions, accounted for more than 99 per cent of turnover.
The concentration highlights the continuing limitations of Ghana’s corporate debt market. Companies remain heavily dependent on bank financing and other private funding channels, while the secondary market provides limited liquidity for corporate bond investors.
Trading in the longer-dated government segment was concentrated in selected DDEP maturities.
The February 2031 bond recorded GH¢657.44mn in turnover, while the February 2032 maturity accounted for GH¢417.21mn.
Together, the two securities represented about 70.5 per cent of the detailed bond volumes captured in the maturity schedule, suggesting that liquidity remains concentrated in a small number of benchmark instruments.
The February 2029 DDEP bond recorded GH¢113.53mn in trades, followed by the February 2027 and February 2030 maturities with GH¢99.01mn and GH¢98.23mn respectively.
No trading was recorded in the February 2033 and February 2035 DDEP securities.
Yield movements were mixed but generally upward across several DDEP maturities.
The February 2027 yield increased to 10.6 per cent from 10.4 per cent, while the February 2029 yield rose by 59 basis points to 13.49 per cent.
The February 2031 yield edged up to 14.36 per cent from 14.19 per cent, while the February 2034 yield increased to 14.9 per cent from 14.66 per cent.
At the longer end, the February 2036 and February 2037 yields increased to 15.5 per cent from 15 per cent and 15.15 per cent respectively.
The February 2030 DDEP yield, however, declined to 13.81 per cent from 14.1 per cent. The new March 2033 government bond also strengthened, with its yield falling to 12.17 per cent from 12.51 per cent.
The week’s trading pattern points to a market that remains active but cautious. Headline turnover improved, yet almost seven out of every 10 cedis traded moved through Treasury bills, while activity weakened in DDEP bonds, corporate securities and sell-buy-back transactions.
The immediate signal is therefore not a decisive return of appetite for longer-term risk. It is a preference for liquidity, shorter maturities and instruments whose pricing is easier to manage in an environment where investors continue to assess inflation, currency pressures and the government’s fiscal outlook.
