Turnover on the secondary bond market fell sharply by 28.56% week-to-week to GH¢1.56 billion, according to data released this week. Trading stayed heavily focused on bonds maturing between 2031 and 2034, which made up 71.30% of the total turnover. These bonds carried an average yield of 13.93%.
The segment covering bonds maturing between 2027 and 2030 accounted for 23.05% of trading, with an average yield of 12.37%. Bonds with maturities after 2035 contributed the smallest share of 5.65%, but had the highest average yield at 15.34%.
Among the newer issues, the September 2030 bond recorded GH¢5.45 million in turnover. This bond traded at a weighted-average yield of 11.85%.
Databank Research said it expects a modest improvement in secondary bond market activity this week. The research team pointed to month-end portfolio rebalancing by fund managers as a supporting factor. However, it noted that gains in turnover may be limited by investors shifting funds towards the Cocoa Board’s (COCOBOD) GH¢16.3 billion issuance programme. The book-building phase for this issuance ran from 28 to 29 September.
COCOBOD’s offer includes GH¢2.3 billion of 5-year senior unsecured amortising bonds and GH¢14.0 billion of 270-day commercial paper. The allotment date is 30 September, with issuance scheduled for 1 October 2026.
The drop in secondary bond turnover follows a week where market participants appeared cautious amid the large upcoming COCOBOD issuance. The 2031-2034 segment’s dominance suggests investors continue to favour mid-term maturities, which offer a balance between yield and duration risk.
The yields on longer-term bonds above 2035 remain elevated, reflecting some risk premium for extended maturities in Ghana’s fixed income market. The lower average yield on the September 2030 bond indicates strong demand for recently issued instruments.
This shift in liquidity towards COCOBOD’s bonds could affect the secondary market’s activity in the coming weeks. Investors may prefer new issues with shorter tenors and attractive yields over trading existing longer-dated bonds.
The secondary bond market’s performance will be closely watched as the government and quasi-government entities tap capital markets to finance spending. The balance between primary issuance and secondary market liquidity will be key for pricing and investor appetite going forward.
According to Joy Online.
