Ghana’s fixed-income market posted a sharp rebound last week, with secondary bond trading and Treasury-bill sales rising strongly on the back of improved liquidity and easing monetary conditions.
Secondary market turnover climbed to GH¢1.6 billion (≈ US$114 million), a steep rise from GH¢37.37 million (≈ US$2.7 million) the previous week. Trading was heavily concentrated in medium-term maturities, led by the 2031–2034 papers, which accounted for 77% of all activity at a weighted-average yield of 15.68%. The 2027–2030 segment captured 13.1% of volumes, while longer-dated 2035–2038 bonds made up the remaining 9.9%.
Analysts say the surge reflects renewed investor confidence following the recent 350-basis-point cut in the Monetary Policy Rate to 18%, supported further by expectations surrounding Ghana’s next IMF disbursement. Improved liquidity conditions have also encouraged portfolio rebalancing after several muted weeks of trading.
On the primary market, the latest Treasury-bill auction attracted total bids of GH¢6.03 billion (≈ US$431 million), with government accepting GH¢5.78 billion (≈ US$413 million) against a target of GH¢2.86 billion (≈ US$204 million). The 2.02 cover ratio was the highest in nearly two years. Yields on the 91-day and 182-day bills fell to 11.05% and 12.43% respectively, while the 364-day bill edged up to 13.09%.
Market watchers attribute the rebound largely to reduced issuance targets and declining returns on Bank of Ghana OMO bills, which channelled more liquidity into government securities. This has supported consistent downward pressure on short-term yields as investors reposition along the curve.
The Treasury plans to raise GH¢5.81 billion (≈ US$415 million) in this week’s auction to refinance maturing bills totalling GH¢5.65 billion (≈ US$404 million), continuing its reliance on short-term funding as the fourth quarter closes. Analysts expect auction demand to remain strong as liquidity holds firm and yields stabilise.
Ghana Stock Exchange calls for fiscal incentives to boost capital market liquidity
