By Leo Nelson
Trading activity on the Ghana Fixed Income Market (GFIM) recorded a notable surge, with total turnover reaching GH¢3.48 billion.
This development reflects a gradual return of investor confidence following the country’s domestic debt restructuring programme. While the market is showing signs of recovery, the structure remains heavily tilted toward sovereign instruments, underscoring the continued dominance of government securities in Ghana’s debt landscape.
A closer look at the trading figures reveals that Treasury bills led the charge, contributing the largest share of the total volume. One particular instrument, GOG-BL-29/03/27-A7004-2000-0, stood out as the most actively traded security of the session. It recorded an impressive GH¢625.61 million across 14 trades, highlighting the strong appetite for short-term instruments among investors.
Investor Preference for Short-Term Securities
The heavy concentration of trading at the short end of the yield curve reflects a familiar trend in Ghana’s fixed income market. Investors continue to favor instruments that offer quick rollover, reduced exposure to duration risk, and greater liquidity. Treasury bills, with their relatively short maturities, provide a level of flexibility that is particularly appealing in a market still adjusting to post-restructuring realities.
This cautious approach is not surprising. The recent restructuring has reshaped investor expectations, prompting a shift toward safer and more liquid assets. As a result, longer-dated instruments are yet to attract the same level of demand, even as new issuances begin to emerge.
DDEP Bonds Gain Ground in Secondary Market
Post-restructuring bonds issued under the Domestic Debt Exchange Programme (DDEP) are steadily gaining traction in the secondary market. These instruments recorded a total turnover of GH¢671.33 million across 25 trades, indicating growing acceptance among investors.
The most actively traded bond in this category was GOG-BD-16/02/27-A6143-1838-8.35, which generated GH¢338.99 million across 9 trades. It closed at a yield of 10.35 percent and a price of 98.3692. This performance suggests that DDEP bonds are gradually finding a stable pricing environment as market participants become more comfortable with the restructured terms.
The sustained activity in this segment points to a broader normalization process within the market. While uncertainty still lingers, the consistent trading of DDEP instruments signals that they are becoming an integral part of the fixed income ecosystem once again.
New 2033 Bond Offers Encouraging Signal
A key highlight of the trading session was the performance of a newly issued Government of Ghana bond. The GOG-BD-29/03/33-A6155-2001-12.50, which carries a coupon rate of 12.50 percent and matures in 2033, recorded GH¢81.85 million across 16 trades. It closed at a price of 101.7981, translating into a yield of 12.11 percent.
This outcome is particularly significant as it signals a tentative return to conventional bond issuance by the government. The bond trading above par suggests that investor demand is beginning to re-emerge for longer-term sovereign instruments. This is an important step toward rebuilding a functional domestic yield curve, which is critical for effective pricing and risk assessment in the broader financial market.
The successful trading of this bond also indicates that investors are gradually regaining confidence in Ghana’s fiscal outlook. While challenges remain, the willingness to engage with new issuances reflects a cautious optimism about the country’s economic trajectory.
Sell-Buy-Back Trades Highlight Liquidity Needs
Sell-buy-back transactions, commonly referred to as repo trades, also played a significant role in the day’s activity. These transactions accounted for GH¢532.59 million of the total turnover, underscoring their importance in short-term liquidity management.
The largest transaction in this category involved the bond GOG-BD-13/02/29-A6145-1838-8.65, which recorded GH¢460 million across just 3 trades. It closed at a price of 92.0037 and a yield of 12.02 percent. The size and concentration of these trades suggest that financial institutions are actively leveraging government securities to manage liquidity positions in a dynamic market environment.
Repo transactions remain a critical tool for banks and other market participants, allowing them to access short-term funding while maintaining exposure to sovereign assets. Their continued prominence highlights the evolving nature of liquidity management strategies in Ghana’s financial sector.
Corporate Bonds Remain on the Margin
Despite the overall improvement in market activity, corporate bond trading remains relatively subdued. Total turnover in this segment stood at GH¢19.87 million across 24 trades, a figure that pales in comparison to the volumes recorded in sovereign instruments.
The most active corporate bond, CMB-BD-31/08/26-A6303-1675-13.00, accounted for GH¢17.22 million of the total. While this indicates some level of participation, it also reinforces the limited role of private sector debt in shaping the market.
This imbalance highlights a longstanding challenge within Ghana’s fixed income market. The dominance of government securities continues to crowd out corporate issuers, limiting the development of a more diversified and resilient debt market.
A Market in Recovery but Not Yet Transformed
The latest trading session presents a clear picture of a market that is on the path to recovery but has not yet achieved full transformation. Treasury bills remain the preferred instrument for many investors, while DDEP bonds are gradually establishing themselves within the new market structure.
The emergence of the new 2033 bond offers a promising sign that conventional issuance is making a comeback. However, the limited activity in corporate bonds and the continued reliance on sovereign securities suggest that structural challenges persist.
As Ghana continues to rebuild its domestic debt market, sustaining investor confidence will be key. The progress made so far is encouraging, but further efforts will be needed to deepen the market, diversify instruments, and create a more balanced financial ecosystem.