Bond market: Trade volumes drop 15.56% to GH¢609m for 2nd consecutive week

Trade volumes in the secondary bond market declined for the second consecutive week to GH¢609 million, down from GH¢722 million.

Activity remained concentrated at the shorter end of the yield curve, with the February 2027 maturity accounting for 47.2% of trading for the third consecutive week, displaying an average yield to maturity (YTM) of 23.72%, a decrease from the previous week’s 24.13%.

Overall, the shorter and belly ends of the yield curve represented approximately 79.44% and 20.56% of total trades, with average YTMs of 23.32% and 24.91%, respectively.

The tail end of the curve however recorded no trading activity.

Considering the over 90% acceptance of the Eurobond exchange offer by Eurobond holders, analysts believe the sovereign’s debt relief is now at a fairly sustainable level, which is likely to reignite market confidence in the near term.

However, activity is expected to remain concentrated at the shorter end of the yield curve, as investors adopt a cautious approach until the broader bond market shows signs of full recovery.