Activity in the secondary bond market for Government of Ghana bonds experienced a notable downturn, with total volume exchanged plummeting by 22.88% week-on-week to GH¢1.03 billion.
The market dynamics were heavily influenced by exchanges pertaining to the February 2028 bond, boasting a coupon rate of 8.50%, which accounted for a substantial 66% of the overall market turnover.
Meanwhile, the local currency yield curve exhibited an uptrend reflecting an uptick in the average Yield-To-Maturity across the 2027-2030 papers to 22.31%, marking a significant increase of 317 basis points. Similarly, the 2035-2038 bonds surged to 22.99%, escalating by 592 basis points.
Analysts anticipate a continued sluggishness in the bond market, attributing it to the recent inflationary pressures witnessed in January 2024. This has prompted investors to favor treasury bills, driven by the allure of repricing benefits.
In light of these developments, market sentiment remains cautious, with expectations for subdued bond market activity persisting in the near term.
Source: norvanreports.com