Bond market

Bond Market: Trade Volumes Dip To GH¢574M
03 Dec

Bond Market: Trade Volumes Dip To GH¢574M

Wontumi10 CommentsBusiness
Activities in the secondary bond market slowed last week, decreasing by 48.87% to GH¢574 million, down from 1.12 billion. Market turnover was distributed across the local currency yield (LCY) curve, with the February 2027 maturity recording the highest volume traded at an average yield to maturity (YTM) of 25.6%, up from 23.4%. The shorter end of the LCY curve accounted for 76.12% of trade concentration, closing the week at an average YTM of 23.3%, while the belly and tail end represented 23.88% of trades, with average YTMs of 25.32% and 25.33% week-on-week, respectively. Analysts expect market activity to moderate in…
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Bond market: Trade volumes Rise To GH¢663M
29 Oct

Bond market: Trade volumes Rise To GH¢663M

Wontumi1Business
Activities in the secondary bond market increased from GH¢500 million last week to approximately GH¢663 million. Most transactions were concentrated on the August 2027 and February 2027 maturities, yielding an average yield to maturity (YTM) of 21.33% and 23.43%, respectively. Notably, a significant portion of the trading occurred at the belly-to-tail end of the local currency yield (LCY) curve, accounting for about 31.75% of total volumes traded. Overall, maturities from 2027 to 2023 represented 54.67% of market turnover, while those from 2031 to 2038 captured 45.33%, with YTMs settling at an average of 23.14% and 24%, respectively. In the near…
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Bond Market: Secondary Market Volume Dips To GH¢886M
11 Sep

Bond Market: Secondary Market Volume Dips To GH¢886M

Wontumi1Business
The secondary bond market activity slowed by 5.35% to GH¢886 million last week, down from GH¢1.21 billion recorded during the preceding week. There were minor clips of trade across all tenors, alongside four repo transactions. The February 2027 and February 2032 maturities accounted for 64.09% of the total volume traded, with average Yield-To-Maturities of 24.31% and 27.20%, respectively. Overall, maturities from 2027 to 2030 made up 45.74% of market activity, with an average YTM of 26.25%. The 2031– 2034 and 2035–2038 maturities contributed 53.88% and 0.38%, with an average YTM of 27.08% and 28.83% respectively. With the recent settlement of GH¢888…
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Secondary Bond Market Improves But Still Below Pre-DDEP Levels
07 Aug

Secondary Bond Market Improves But Still Below Pre-DDEP Levels

Wontumi1Business,
The secondary bond market activity improved in the first half of 2024 compared to the same period last year, but is still below pre-Domestic Debt Exchange Programme levels. Investors are still focusing more on the money market. According to trading results, market activity improved for Government of Ghana securities, partly due to growing participation from some offshore investors. Additionally, significant improvement and transparency in sell-buyback trades partly benefited secondary market activity. Overall, the market recorded turnover was worth GH¢19.18 billon. Meanwhile, the completion of external debt rework could be beneficial to the Ghanaian secondary bond market. Ghana’s debt restructuring primarily…
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Bond Market: Total Turnover Increased Sharply By 600% To GH¢527.72M
10 Jul

Bond Market: Total Turnover Increased Sharply By 600% To GH¢527.72M

Wontumi1Uncategorized
The Ghanaian secondary bond market rebounded largely last week on the back of sell-buy-back trades. As a result, the total volume traded across the market amounted to GH¢527.72 million. This reflected an increase of over 600% compared to the previous week. Market activity was driven by the short-to-medium term maturities, as the 2027 to 2030 papers accounted for 57% of the volume traded. The 2031 to 2034 bonds also contributed 43%. On a type of trade basis, market activity was driven by sell-buy-backs, which recorded 57% of the week’s market turnover. Analysts expect trading activity to improve partly driven by…
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Bond Market: Total Market Turnover Rebounds To GH¢762.41M
21 May

Bond Market: Total Market Turnover Rebounds To GH¢762.41M

Wontumi1Business
Trading activity on the secondary bond market activity more than doubled in last week’s sessions. The total volume of transactions increased by 2.48 week-on-week to GH¢762.41 million. Market activity increased largely due to the instruments at the belly to the tail of the LCY yield curve. This improved significantly and accounted for nearly 79% of the week’s turnover. Analysts expect lackluster market activity, partly supported by the end-of-month search for liquidity, which is mostly driven by the banks and focuses attention on the treasury bills market. The bond market has in recent times recorded mixed performance. Source: Myjoyonline
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Bond Market: Turnover Tumbles By 52.9% To GH¢336.90M
16 Apr

Bond Market: Turnover Tumbles By 52.9% To GH¢336.90M

Wontumi1Business
Total turnover on the bond market retreated by 52.94% week-on-week to GH¢336.90 million last week. The decrease in activity partly came on the back of a shorter trading week resulting from the Eid ul-Fitr celebration. The front end of the Local Currency (LCY) yield curve continues to see a bulk of market activity, with over 55% of the aggregate weekly turnover. Meanwhile, the February 2036 papers at the tail of the LCY curve recorded some minor exchanges. Ghana reached an International Monetary Fund Staff-Level agreement on its second review, with positive remarks on key benchmarks and gradual economic progress. Notably,…
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Bond Market: Turnover Rebounds By 19.01% Week-On-Week To GH¢205.18M
05 Mar

Bond Market: Turnover Rebounds By 19.01% Week-On-Week To GH¢205.18M

Wontumi1Business
The total volume exchanged on the secondary bond market for Government of Ghana bonds rebounded by 19.01% week-on-week. This reflected a market turnover of GH¢205.18 million. The bond exchanges recorded for the week remained evenly spread across the front and the tail end of the LCY yield curve. There were about 8% of transactions at the belly of the curve. Analysts expect the February 2024 end-of-month portfolio adjustment by pension fund managers to augur favourably for bond exchange this week. Meanwhile, yields fell sharply in February 2024 as the strong money market liquidity outweighed any upside risk from the unexpected…
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Bond Market: Total Turnover Decreased By 16.25% Week-On-Week To GH¢1.33Bn
13 Feb

Bond Market: Total Turnover Decreased By 16.25% Week-On-Week To GH¢1.33Bn

Wontumi1Business
The secondary bond market for Government of Ghana papers slowed in activity as the total volume traded declined by 16.25% week-on-week to GH¢1.33 billion. Notably, exchanges from the February 2028 (coupon: 8.50%) and February 2029 (coupon: 8.65%) papers jointly constituted about 76% of the aggregate market turnover. The LCY yield curve reversed downward, as the average Yield-To-Maturity on the 2027-2030 papers decreased to 19.13% (-198bps). The 2035- 2038 also retreated to 17.07% (-14 basis points). Analysts expect the sluggish trend in bond market activity to continue as investors reinforce firm demand for treasury bills to increase investment returns. This is…
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Bond Market: Turnover Increased Sharply By 48.47% Week-On-Week To GH¢1.24Bn
23 Jan

Bond Market: Turnover Increased Sharply By 48.47% Week-On-Week To GH¢1.24Bn

Wontumi1Business
Trading activity improved on the secondary bond market last week as week-on-week turnover increased sharply by 48.47% to GH¢1.24 billion. Trading activity concentrated more at the belly of the LCY yield curve, as the February 2033 (Coupon: 9.25%) and February 2034 (Coupon: 9.40%) papers jointly contributed more than half of the aggregate market turnover. Bond yields increased across the board, as the average Yield-To-Maturity on the 2027-2030 papers increased to 17.36%, while the 2035-2038 advanced to 12.8%. Analysts expect investor sentiments to continue improving in the bond market as the International Monetary Fund board approval for the first review of…
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