Bond market: Turnover declined by 28% to GH¢1.56bn

The secondary bond market experienced a significant slowdown, with trading activity dropping 28.56% week-over-week to a total of GH¢1.56 billion. The majority of this reduced turnover was concentrated in the 2031-2034 maturity segment, accounting for 71.30% of the total transactions. This segment achieved an average yield of 13.93% during the period.

The 2027-2030 segment, while smaller in comparison, still represented a substantial portion of the market, comprising 23.05% of the turnover and offering an average yield of 12.37%. The post-2035 maturities accounted for the remaining 5.65% of the total activity, securing an average yield of 15.34%. A notable individual transaction was the September 2030 bond, which saw GH¢5.45 million in turnover at a weighted-average yield of 11.85%.

Analysts from Databank Research anticipate a slight rebound in the secondary bond market this week, driven by fund managers repositioning their portfolios at month-end. However, they caution that this potential turnaround may be limited, as investors anticipate the launch of COCOBOD's GH¢16.3 billion issuance program, scheduled for issuance on 1 October 2026.

The upcoming issuance will include GH¢2.3 billion in 5-year senior unsecured amortising bonds and GH¢14.0 billion in 270-day commercial paper, with the allotment process commencing on 30 September.