Turnover on Ghana’s secondary bond market falls by 68%
In Ghana, trading volume on the secondary bond market fell by 68.28% over the week, to 2.12 billion Ghanaian cedis (GH¢). This was reported by MyJoyOnline, citing Databank Research.
Trading in 2031–2034 bonds
The largest share of turnover, 74.22%, came from securities maturing in 2031–2034. Their weighted average yield was 14.39%.
Bonds maturing in 2027–2030 accounted for 18.72% of turnover, with an average yield of 13.47%. The share of securities maturing after 2035 was 7.06%, while their average yield was 14.72%.
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New bond issue
On the primary market, Ghana’s new four-year government bond issue maturing in September 2030 received bids worth 4.46 billion cedis. Bids worth 3.15 billion cedis were accepted at a cut-off yield of 12%.
According to Databank Research, the timing of the bond issue was chosen in light of improved liquidity following a 2.3 billion cedi COCOBOD payment under the DDEP, as well as 5.82 billion cedis in unallotted bids at the Treasury bill auction on August 31. Analysts believe this shifted investors’ attention, contributing to the decline in secondary market turnover. Databank Research expects a moderate market recovery after settlement of the new bond issue.
