Trading activity in Ghana’s government bond market slowed last week, with total volume falling 16.5% to GHS 7.77 billion, down from GHS 9.31 billion the previous week, according to Ghana Fixed Income Market (GFIM) data.
Short-term government securities experienced the sharpest declines. Treasury bill trading dropped 36% to GHS 2.71 billion, while old government bonds fell nearly 92% to just GHS 22 million. New government bonds remained the main driver of activity, trading GHS 2.93 billion, slightly lower than the previous week.
Corporate bonds stood out with significantly higher activity, rising over 1,600% to GHS 422 million, while special benchmark bonds fell 16.6% to GHS 1.71 billion.
Yields showed mixed movements. The 4-year bond yield edged up to 9.11%, while the 5-year yield fell to 10.37% from 11.95%. Longer-term yields were varied, with the 11-year bond dropping to 12.87% and the 10-year easing slightly to 12.31%.
Volume distribution highlighted strong interest in mid-term bonds, particularly the 4-year and 7-year maturities, which traded GHS 744 million and GHS 706 million, respectively.
The decline in overall trading volume reflects lower investor participation, while mixed yields indicate selective demand across different maturities.
The lower activity suggests that investors are cautious, possibly holding back from committing large sums, which could affect liquidity in the bond market.
Mixed yields indicate uncertainty about returns, and the sharp increase in corporate bond trading points to growing interest in alternative fixed-income instruments. The combination of cautious participation and selective buying could influence how the government and businesses raise capital in the near term.
