The secondary bond market experienced a significant slowdown this week, with total turnover falling by 18.16% week-on-week to GH¢326.76 million from GH¢399.29 million the previous week. Trading activity was heavily focused on the belly of the curve, particularly the February 2027 maturity, which accounted for GH¢157.83 million in trades.
The 2027-2030 segment dominated market activity, capturing 61% of total turnover at a weighted average yield of 15.62%. Meanwhile, the 2031-2034 maturities attracted 39% of the traded volume with a yield of 15.81%. However, activity on the long end of the curve (2035-2038) remained muted, showing limited investor interest.
Market watchers expect a steady but cautious tone going forward, with yields broadly stable but potentially slightly firmer as investors digest revenue risks linked to the budget and await guidance from the upcoming Monetary Policy Committee (MPC) meeting.
Long-end bond activity is anticipated to stay subdued due to limited appetite for duration, though investor sentiment might improve once the finance minister unveils concrete plans to revitalize the domestic bond market, according to Databank.
Story by: Mercy Addai Turkson #ahotoronline.com