Accra, Ghana – The Ghanaian secondary bond market experienced a robust rebound this past week, with aggregate turnover surging by an impressive 319.43% to reach GH¢2.34 billion. This significant increase in trading activity was primarily attributed to typical end-of-month portfolio rebalancing among investors.
Market Activity Concentrated in Key Maturities
Trading was notably concentrated in the front-to-belly segments of the yield curve. The maturities ranging from 2031 to 2034 accounted for the largest share of activity, representing 56.34% of the total turnover. These bonds cleared at a weighted-average yield of 12.53%.
Further demonstrating the focus on medium-term debt, the 2027-2030 segment also saw substantial engagement. This portion of the curve contributed 43.62% to the overall turnover, with trades settling at a weighted-average yield of 11.19%.
Long-End Bonds Remain Sidelined
In contrast, the longer end of the maturity spectrum saw minimal trading. Bonds maturing between 2035 and 2038 constituted a mere 4.0% of the week’s turnover. These trades were executed at a weighted-average yield of 12.53%, indicating a higher yield expectation for longer-term commitments.
The newly issued 7-year bond, maturing in 2033, also experienced modest activity. It recorded a turnover of GH¢1.04 million, with transactions occurring at a weighted-average yield of 12.37%.
Investor Demand and Future Outlook
Analysts at Databank Research anticipate that trading activity in the coming period will likely remain selective. Investor demand is expected to continue favoring the front-to-belly segments of the yield curve.
The limited appetite for longer-duration bonds suggests that investors are cautiously assessing the economic landscape and inflation outlook. This preference for shorter to medium-term maturities allows for greater flexibility and potentially quicker recovery of capital in a dynamic market environment.
The rebound in turnover indicates renewed liquidity and investor confidence, even if concentrated in specific maturity buckets. Market participants will be closely monitoring economic indicators, central bank policy, and fiscal developments to gauge future trends in bond yields and trading volumes.
Looking ahead, the market will watch to see if this concentration in shorter-to-medium term bonds persists or if broader investor interest develops across the entire yield curve. Any shifts in inflation expectations or government debt management strategies could significantly influence trading patterns and yield levels in the upcoming weeks.
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