Secondary fixed income market witnesses 10.7% weekly surge hits GH¢4.19bn turnover

The secondary fixed-income market witnessed a notable surge in aggregate turnover reaching GH¢4.19 billion, reflecting a robust 10.7% week-on-week increase. This uptick was nearly evenly distributed between bonds and Treasury bills (T-bills).

While the value of bonds traded demonstrated ongoing improvement, the prevailing market activity in bonds remains predominantly characterized by sell/buy-back transactions. This nuanced trend does not signify a genuine resurgence in pure trades on the secondary market but rather underscores investors’ strategic management of liquidity levels through their bond portfolios.

Despite the increased turnover, bond yields persist at subdued levels, contributing to an environment dominated by sell/buy-back dynamics. The activity in bonds on the Ghana Fixed Income Market (GFIM) may continue to exhibit a restrained trajectory until a correction is witnessed in the local currency yield (LCY) curve.

This development highlights the cautious approach of market participants as they navigate the current landscape, emphasizing the importance of monitoring both transactional volumes and the underlying nature of trades to discern the true pulse of the secondary fixed-income market in the country.