The trading volumes on the local secondary bond market declined marginally by 1.87% to GH¢1.59 billion over the preceding week.

According to the trading report, the bond exchanges remained skewed towards the shorter maturities, as the 2027 to 2030 papers jointly pulled 69% of the total market turnover.

The LCY yield curve continued to tilt northwards, as the average Yield-To-Maturity (YTM) on the 2027-2030 papers increased to 21.12% (+192 basis points).

That of the 2035-2038 also advanced to 17.22% (+128 basis points).

Analysts believe bond market activity could remain sluggish as investors seek to snap returns on the money market amid declining treasury bill yields.

In 2024, T-bills would remain the dominant driver of activity in the fixed-income market.

“We expect yields to decline on a positive inflation outlook, but upside pressures will persist from the government's high demand for money market funding. Substantial refinancing obligations may keep upside pressures elevated”, said Databank Research.