Ghana’s secondary bond market recorded GH¢1.41 billion in trades last week, a 25% increase from the prior week’s GH¢1.23 billion, reflecting a recalibration of institutional portfolios toward government securities amid still-fragile macroeconomic conditions.
Roughly 60% of the transactions were concentrated in short-dated government bonds, underscoring a defensive tilt by investors favoring lower duration risk and faster liquidity cycles. These instruments offered an average yield of 20%, matching returns on the most traded note, the February 2027 bond, which alone accounted for nearly one-third of total market activity, according to Data Bank Research.
Longer-term bonds captured the remaining 40% of weekly volume and were priced at higher risk with an average yield of 21.3%. The marginal decline in bond prices pushed yields higher across the curve, signaling residual caution despite an overall uptick in market activity. This repricing suggests investors are still calibrating their exposure amid shifting policy expectations and uncertainties around the medium-term fiscal trajectory.
The surge in activity has been attributed to a combination of liquidity management strategies, tactical reallocation by pension funds and banks, and anticipation of end-of-month NAV recalibrations. Ghana’s improving macroeconomic data, slowing inflation, stabilizing FX markets, and recent sovereign rating upgrades, have helped revive confidence in local debt instruments, but conviction on duration risk remains mixed.
The Ghana Fixed Income Market (GFIM) has shown signs of recovery in recent months, though volumes remain below pre-2022 restructuring levels. With fiscal consolidation efforts ongoing and monetary tightening expected to taper, yields may compress slightly over the coming quarters, provided inflation continues to decelerate and external risks remain contained.
Still, traders remain alert to global rate moves, commodity-linked revenue fluctuations, and potential fiscal slippages that could reshape the local curve. For now, the bulk of liquidity remains parked in short-term paper as market participants prioritize agility over yield compression.
