Secondary Bond Market Turnover Drops 60% WoW to GH¢941m Amid Weakened Activity
Secondary market activity in Ghana’s bond market weakened over the past week, with aggregate turnover declining sharply by 60.44% week-on-week to GH¢941.11 million, reflecting a slowdown in investor participation.
Trading activity was largely concentrated in the front-to-belly segment of the yield curve, as investors maintained a preference for shorter- to medium-dated instruments.
Data from the market showed that bonds within the 2027–2030 maturity bucket dominated activity, accounting for 53.33% of total traded volumes at a weighted-average yield of 11.97%.
The 2031–2034 segment followed closely, capturing 46.63% of total turnover, with trades executed at a higher weighted-average yield of 12.49%.
In contrast, activity at the long end of the curve remained subdued, with bonds maturing between 2035 and 2038 contributing a marginal 0.04% of total volumes, trading at a weighted-average yield of 12.51%.
Commenting on the development, Databank Research attributed the sharp decline in turnover to a pause in investor positioning amid prevailing market uncertainties.
“We believe the sharp decline in turnover points to a pause in positioning, with investors remaining selective ahead of clearer signals from the bond market reopening,” it noted.
Looking ahead, Databank expects a modest rebound in trading activity towards the end of the month, as investors undertake portfolio rebalancing.
