Bond market: Trading activity increases to GH¢904m

Bond market: Trading activity increases to GH¢904m

The secondary bond market trade activity picked up last week, settling at GH¢904 million, up from GH¢794 million in the previous week.

Modest offshore demand drove most of the activity at the short end of the yield curve, with the February 2030 and February 2031 papers dominating trade volumes.

They accounted for 61% of the total turnover.

Overall, the 2027-2030 maturities represented 54% of trades at a weighted average Yield-To-Maturity (YTM) of 16.70%.

This was up from 16.03%, while the 2031 and 2038 papers comprised 46% at a weighted YTM of 16.56%.

Databank Research said it expects sentiments to strengthen in the near term on the back of persistent disinflation, with confidence in these bonds sustaining their role as preferred collateral for repo transactions among large institutions.

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