Bond market: Trade volumes drop 15.56% to GH¢609m for 2nd consecutive week

Trading activity in the secondary bond market witnessed a decline for the second consecutive week, with volumes dropping to GH¢609 million from the previous week’s GH¢722 million. The focus of trading remained at the shorter end of the yield curve, particularly the February 2027 bond, which accounted for 47.2% of all trades for the third week in a row. This bond recorded an average yield to maturity (YTM) of 23.72%, down from 24.13% in the prior week.

In total, the shorter and mid-term sections of the yield curve represented about 79.44% and 20.56% of all trades, with average YTMs of 23.32% and 24.91%, respectively. Notably, there was no trading activity at the longer end of the yield curve.

Analysts suggest that, following the over 90% acceptance rate of Ghana’s Eurobond exchange offer, the country’s debt relief is now at a more sustainable level. This development is expected to boost market confidence in the near future. However, trading is likely to remain concentrated on the shorter end of the curve as investors maintain a cautious stance, waiting for signs of full recovery in the broader bond market.