Bond market: Turnover rebounds strongly rising by 319% to GH¢2.34bn

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The secondary market activity rebounded strongly during the week, with aggregate turnover rising 319.43% week-on-week to GH¢2.34 billion.

This was largely driven by end-of-month portfolio rebalancing.

Trading activity remained concentrated in the front-to-belly of the curve, with the 2031-2034 maturities accounting for 56.34% of total turnover. This cleared at a weighted-average yield of 12.53%.

The 2027-2030 segment also saw meaningful activity, accounting for 43.62% of turnover at a weighted-average yield of 11.19%.

The long end remained largely sidelined, with the 2035-2038 maturities contributing just 4.0% of turnover at a weighted-average yield of 12.53%.

Meanwhile, the newly issued 7-year 2033 bond recorded modest turnover of GH¢1.04 million at a weighted-average yield of 12.37%.

Overall, Databank Research expects trading activity to remain selective, with investor demand concentrated in the front-to-belly segment as appetite for longer-duration bonds remains limited.

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