Bond market: Total turnover decreased by 16.25% week-on-week to GH¢1.33bn

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The secondary bond market for Government of Ghana papers slowed in activity as the total volume traded declined by 16.25% week-on-week to GH¢1.33 billion.

Notably, exchanges from the February 2028 (coupon: 8.50%) and February 2029 (coupon: 8.65%) papers jointly constituted about 76% of the aggregate market turnover.

The LCY yield curve reversed downward, as the average Yield-To-Maturity on the 2027-2030 papers decreased to 19.13% (-198bps).

The 2035- 2038 also retreated to 17.07% (-14 basis points).

Analysts expect the sluggish trend in bond market activity to continue as investors reinforce firm demand for treasury bills to increase investment returns. This is amid declining T-bill yields.

Meanwhile, the government plans to raise GH¢4.87 billion on the 91-day to 364-day bills to refinance GH¢4.15bn maturing bills.

Analysts believe a relatively high auction target (+6.06% week-on-week), could trigger some upside pressures to yields.

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