Ghana Bond Market Turnover Surges 343.17% to GH¢7.16 Billion Amid Strong Secondary Market Activity
Introduction
The Ghana Bond Market Turnover experienced a significant rise in secondary market activity in the just-ended trading week with investors more active in government securities.Total market turnover jumped 343.17% compared to the previous week, reaching GH¢7.16 billion—marking its strongest performance since the Domestic Debt Exchange Programme (DDEP) was launched.
The big jump reflects improving market liquidity as well as renewed investor confidence supported by attractive yield levels and improved pension-related cash flows.
Ghana Bond Market Turnover Hits Highest Level Since DDEP
The secondary market received a major boost during the review period with a total turnover of GH¢7.16 billion; representing a 343.17% increase week-on-week, and the highest turnover level since the introduction of the Domestic Debt Exchange Programme.
The surge is a reflection of the increasing interest of investors in the fixed income market in Ghana under conducive market conditions.
Heavy Trading in 2027-2030 Maturitie
Most market transactions were focused on bonds with maturity dates falling within the 2027–2030 period.
Securities accounted for 51.93% of total market turnover with a weighted average yield of 11.72%.
Healthy demand for the segment comes as investors continue to look for medium-term government debt to balance risk and returns.
Healthy investor appetite for 2031-2034 bonds
The 2031-2034 bucket also drew healthy investor interest.
This part accounted for 47.64% of the total number of trades with an average yield of 14.01%.
The heavy participation shows there is still an appetite for longer-dated bonds with relatively attractive yields
Limited activity after 2035
Bond trading activity in securities maturing after 2035 remained subdued.
Average yield in the 2035-2038 maturity segment was 14.59%, but only accounted for 0.42% of total turnover.
The limited participation suggests that investor appetite for the far end of the yield curve remains weak, with many market participants preferring shorter and medium-term maturities.
Databank Research Explains Market Surge
According to Databank Research:
“We attribute the sharp increase in turnover to improved pension-related liquidity and more attractive yield levels.”
The research firm noted that enhanced liquidity conditions and competitive returns have encouraged stronger participation in the secondary bond market.
Positive Outlook for Secondary Market Activity
Databank Research expects secondary market activity to remain well-supported in the near term.
The firm believes that improved liquidity and attractive yields will continue to drive investor demand helping to sustain momentum across Ghana’s fixed income market.
Related: Ghana Bond Market Turnover Drops 18% to GH¢326m as Investors Stay Cautious https://verifiedreportsghana.com/ghana-bond-market-turnover-drops-18/
Conclusion
The recent surge in Ghana Bond Market Turnover is a sign of growing investor confidence and improving liquidity conditions in the country’s bond market. With turnover reaching GH¢7.16 billion – the highest since the Domestic Debt Exchange Programme – market participants are becoming increasingly attracted to attractive yield opportunities. If pension-related liquidity remains strong and yields attractive, secondary market activity is expected to continue on an upward trend in the coming weeks.