Total market turnover on the secondary bond market declined 48.52% week-on-week to ¢133.96 million last week.

This was primarily driven by a 45.00% week-on-week downturn in trades across the new bonds.

Moreover, the average yield of the 2027-2030 maturities increased 173 basis points, settling at 12.54%.

Notably, the 2031-2033 and 2034-2038 instruments displayed substantial increases in average yields, reaching 12.24% and 12.37% respectively.

Analysts perceive market activity could remain around the ¢100 million mark as investors hang on the fence for June 2023 inflation data and the mid-year budget review to gauge the tone of the economy.

T-bills trade dominated secondary market activity

Meanwhile, treasury bills trade dominated secondary market activity on the Ghana Fixed Income Market last week as bond trades remain broadly subdued.

The T-bill volumes declined by 3.96% week-on-week to ¢1.09 billion last week.

The bonds traded close to par, with activity still centered on the front end of the curve.

With nominal money market instruments returning significantly higher yields than bonds, activity on the secondary market could remain subdued for a while.