Bond Market Records Over 25% Jump in Trading Activity Amid Investor Caution
Investor activity on Ghana’s secondary bond market surged last week, with total trades climbing by over 25% to GHS 1.41 billion, up from GHS 1.23 billion recorded the previous week. The increase signals renewed investor interest in government securities amid evolving market conditions.
According to Databank Research, the February 2027 bond emerged as the most actively traded paper on the market, accounting for roughly one-third of total trades. The bond offered an average yield of 20%.
The bulk of the trading activity—approximately 60%—was concentrated in short-term government bonds, reflecting investor preference for instruments with shorter maturities and lower risk exposure. These short-term instruments also offered an average yield of 20%. Medium- to long-term bonds, which made up the remaining 40% of activity, attracted a slightly higher average yield of 21.3%.
Despite the uptick in trading volumes, bond prices slipped marginally during the week, pushing yields slightly higher. This price movement is typically associated with increased investor caution, especially amid lingering uncertainties in the macroeconomic environment.
Market analysts attribute the rise in bond trades to a combination of factors, including portfolio adjustments by institutional investors and ongoing liquidity management strategies. They also note that trading volumes could see further momentum in the coming weeks, as banks and asset managers rebalance their portfolios ahead of the end-of-month financial reporting cycle.
The Ghana Fixed Income Market (GFIM) has seen a gradual recovery in investor confidence, buoyed by improving macroeconomic indicators such as declining inflation, exchange rate stability, and Ghana’s recent sovereign credit rating upgrades.
