The latest data from the secondary bond market for Government of Ghana papers shows a slowdown in activity, with a 16.25% decline in total volume traded week-on-week to A total volume of GH¢1.33 billion. The market turnover was largely driven by exchanges from the February 2028 and February 2029 papers, accounting for about 76% of the aggregate turnover.
Additionally, the LCY yield curve experienced a downward reversal, as the average Yield-To-Maturity on the 2027-2030 papers decreased to 19.13% while the 2035-2038 papers retreated to 17.07%. Analysts are predicting a continued sluggish trend in bond market activity as investors seek firm demand for treasury bills in order to increase investment returns amid declining T-bill yields.
Meanwhile, the government is planning to raise GH¢4.87 billion on the 91-day to 364-day bills to refinance GH¢4.15bn maturing bills. This relatively high auction target, increasing by 6.06% week-on-week, could trigger some upside pressures to yields in the market.
