Activity in the secondary bond market for Government of Ghana papers slowed down, with the total volume traded declining by 16.25% week-on-week to GH¢1.33 billion.
Most notably, trades from the February 2028 (coupon: 8.50%) and February 2029 (coupon: 8.65%) papers collectively accounted for approximately 76% of the overall market turnover.
The local currency (LCY) yield curve experienced a downward reversal, with the average Yield-To-Maturity on the 2027-2030 papers decreasing to 19.13% (a decline of 198 basis points). Similarly, the 2035-2038 papers retreated to 17.07% (a decrease of 14 basis points).
Analysts anticipate that the sluggish trend in bond market activity will persist as investors continue to prioritize treasury bills to maximize investment returns, particularly amidst declining T-bill yields.
Meanwhile, the government intends to raise GH¢4.87 billion through 91-day to 364-day bills to refinance maturing bills worth GH¢4.15 billion.
Analysts suggest that the relatively high auction target (+6.06% week-on-week) could potentially exert upward pressure on yields.