Bond market: Turnover increased by 13.17% to GH¢1.33bn

Activity in the secondary bond market rose by 13.17% week-on-week last week, with total volumes reaching GH¢1.33 billion.

Trading remained concentrated in the General Category bonds, led by the February 2027 and February 2030 papers, which together accounted for 42% of market turnover.

The shorter end of the local currency yield (LCY) curve dominated, contributing 77% of volumes at an average yield to maturity of 22%.

The belly and tail segments comprising the remaining 23%, clearing at an average yield of 21%.

“We believe Fitch’s upgrade of the sovereign Long-Term Foreign Currency Default Rating from RD to B- lifted investor sentiment, driving increased activity in the secondary bond market”, Databank Research said.

Analysts expect the momentum to persist, supported by end-of month balance sheet rebalancing by banks.