Bond market: Activity weakens as turnover fell by 58%
The 2027–2030 segment contributed 38.25% at an average yield of 13.02%.
The secondary bond market activity weakened significantly, marking a stark contrast to the previous week's 51.80% increase. Trading volume plummeted by an alarming 58.18%, according to Databank Research. The market's concentration remained firmly within the medium-term segment, with 2031-2034 maturity bonds accounting for a substantial 58.14% of the turnover.
These bonds boasted a weighted-average yield of 14.39%. The 2027-2030 maturity bonds contributed a significant 38.25% to the total, yielding 13.02%. However, the longer-dated bonds exhibited subdued activity, making up a mere 3.61% of the total turnover at an average yield of 15.07%. Databank Research attributed this softened market activity to the ex-coupon period, as investors postponed reinvesting until coupon settlement took place.
Following a liquidity injection later in the week, a portion of the funds were redirected into the primary treasury bill market, further diminishing bond-market demand. The analysts at Databank Research forecast that secondary-market activity should remain robust, buoyed by coupon reinvestment flows and the overflow from unmet Treasury bill demand.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
