Ghana’s secondary bond market recorded a significant resurgence in activity last week, with turnover climbing by 343.17 percent week-on-week to GH¢7.16 billion, marking the highest level since the implementation of the Domestic Debt Exchange Programme (DDEP).
The sharp increase reflects renewed investor participation and improving liquidity conditions in the fixed-income market, according to market analysts.
Trading activity remained heavily concentrated in medium-term government securities, particularly bonds maturing between 2027 and 2030. This segment accounted for 51.93 percent of total market turnover and traded at a weighted-average yield of 11.72 percent.
Investor interest was also strong in the 2031 to 2034 maturity range, which represented 47.64 percent of total trades. Bonds within this segment recorded an average yield of 14.01 percent, highlighting continued demand for instruments offering relatively attractive returns.
The concentration of activity within these maturity buckets suggests investors remain focused on balancing yield opportunities with manageable duration risk.
Long-Term Appetite Remains Limited
Despite the overall surge in trading volumes, activity beyond 2035 remained subdued. Bonds maturing between 2035 and 2038 accounted for just 0.42 percent of total turnover, with an average yield of 14.59 percent.
The limited participation at the far end of the yield curve indicates that investors continue to exercise caution toward longer-dated securities despite their higher returns.
Databank Research attributed the strong rebound to improving liquidity conditions within the market.
“We attribute the sharp pickup in turnover to improved pension-related liquidity and more attractive yield levels,” the firm stated.
Analysts expect momentum in the secondary bond market to remain positive in the near term as institutional investors continue to seek opportunities in government securities.
With liquidity improving and yields remaining attractive across key maturities, market participants anticipate sustained demand that could support trading activity in the weeks ahead.
