Bond market: Turnover declines by 59% to GH¢377.59m

The Secondary market activity softened over the week, with aggregate turnover declining by 59.88% week-on-week to GH¢377.59 million.

This is coming after the government announced its return to the primary market to raise long-term funds.

Trading activity was concentrated in the front-to-belly segment of the curve.

The 2027-2030 maturities led activity, accounting for 88.98% of total traded volumes at a weighted-average yield of 10.73%.

The 2031-2034 segment followed, capturing 11.02% of total turnover at a weighted-average yield of 12.22%.

In contrast, participation on the 2035-2038 tenors remained mute, with no trades recorded.

“We expect secondary market activity to remain subdued in the near term, as investors remain on the sidelines ahead of the anticipated 7-year (2033) bond issuance and the pending pricing guidance”, said Databank Research.

In the interim, it expects activity to remain selective, with only modest support from month-end portfolio rebalancing, while a meaningful pickup in turnover will hinge on clearer yield signals from the new issuance.