Ghana’s secondary bond market recorded a significant increase in trading activity, with total turnover rising by 47.55% week-on-week to GH¢4.07 billion, reflecting renewed investor activity in government securities.
Market trading remained concentrated in short- to medium-term government bonds, particularly maturities between 2027 and 2030. These bonds accounted for 63.68% of total market turnover, trading at an average yield of 12.43%.
Meanwhile, government bonds maturing between 2031 and 2034 represented 34.69% of total trading volume, with an average yield of 14.05%. This performance indicates selective investor interest in longer-dated securities as market participants assess investment returns and Ghana’s economic outlook.
Long-term government bonds maturing after 2035 accounted for the remaining 1.63% of turnover, recording an average yield of 14.84%.
Among the actively traded securities, the September 2030 government bond recorded GH¢45.85 million in transactions, with a weighted-average yield of 11.94%.
According to Databank Research, activity in Ghana’s bond market is expected to remain firm in the near term, supported by improved investor sentiment following Moody’s decision to upgrade Ghana’s sovereign credit rating to B3 from Caa1.
The credit rating upgrade could strengthen confidence in Ghana’s economic outlook and government debt securities, potentially encouraging further investment in the domestic fixed-income market.
Investors will continue to monitor government bond yields, secondary market turnover, sovereign credit ratings, inflation trends, and broader macroeconomic developments as they assess opportunities in Ghana’s fixed-income investment market.
The increase in bond market activity highlights the importance of Ghana government securities as an investment option for investors seeking returns from the country’s financial markets.
Source: newsthemegh.com