Bond market Archives - Page 2 of 2

12 Dec

Bond Market: Total Market Turnover Up 18.09% To ¢1.40Bn

wontumionlineBusinessBond market, coupon, T-Bills

Trading of Government of Ghana papers in the local bond market regained steam last week as the total weekly volume traded improved 18.09% week-on-week to ¢1.40 billion. The February 2027 (coupon: 8.35%) paper gained traction in last week’s trading, as it matched the February 2030 (coupon: 8.80%) bond, to jointly contribute 60% of total market turnover. Notably, the average yield for the 2027 to 2030 tenors increased by 205 basis points to 20.05%, while the 2031 to 2034 papers traded around 15.72%, down by 96 basis points. Analysts expect trading activity to remain lively in the bond market in the…

17 Oct

Bond Market: Total Market Turnover Falls To ¢187.21M

wontumionlineBusinessBond market, market turnover

Trading activity lost significant steam in the secondary bond market for Government of Ghana securities. Investors exchanged ¢187.21 million largely across the 2027-2030 new papers, constituting over 95% of total market turnover. This is about 67% reduction over that of last week's trading. However, aggregate turnover on the secondary fixed income market increased marginally to GH¢1.38 billion, driven largely by activity in Treasury bills. Market attention moved from the February 2027 paper to the February 2028 and February 2030 bonds, which jointly contributed 89% of the total volume traded. The weighted average yield on the 2027-2030 maturities settled at 12.67%,…

10 Oct

Bond Market: Total Market Turnover Increased By 45% To ¢582.64M

wontumionlineBusinessBond market, imf, secondary market, turnover

Trading on the secondary bond market was upbeat last week. This is partly on the back of positive remarks from the International Monetary Fund, following the first review of Ghana’s $3 billion Economic Credit Facility. Investors exchanged a total volume of ¢582.64 million, representing a 45.26% increase week-on-week in Government of Ghana bonds. The February 2027 and February 2028 papers jointly dominated trading activity, contributing 84% out of 107 trades recorded during the week and over 90% of the market turnover. Bond yields at the front of the LCY curve declined 187 basis points to 12.47%. Analysts expect trading activity…

29 Aug

Bond Market: Total Market Turnover Falls Sharply To ¢17.34M

wontumionlineBusinessBond market, coupon, market turnover

The secondary bond market activity was subdued last week. This is coming as investors hung on the fence to assess the cash coupon payments on the new bonds. The aggregate market turnover declined sharply to ¢17.34 million, a decline of -80.81%. This is partly on the back of contraction in trades across the 2027-2030 maturities of the new papers. Similarly, bond prices registered steady upticks, responding to the coupon payments by the government. Analysts expect the end-of-month portfolio adjustments by pension funds and other asset managers to augur well for bond market activity this week. Source: Myjoyonline

22 Aug

Bond Market: Total Market Turnover Expands By 18.7% To ¢90.40M

wontumionlineBusinessBond market, turnover

The secondary bond market rebounded last week, recording an increase in total volume traded. Total market turnover expanded by 18.78% to ¢90.40 million. The upturn in overall market activity followed increased transactions across the new bonds. The 7-year new bond (maturity: Feb-2030) registered two major trades. It contributed 89% of the week’s aggregate turnover. Bond prices at the shorter end of the LCY curve declined an average of 2% week-on-week, while the belly and tail parts declined 14% and 13%, respectively. Analysts believe the large target size for treasury bills auction will likely continue to present a downside to bond…

25 Jul

Bond Market: Total Market Turnover Surges 91.52% To ¢336.8M

wontumionlineBusinessBond market, market turnover

Total market turnover on the secondary bond market upsurged by 91.52% week-on-week to ¢336.87 million. This shows that activities on the bond market are improving. The upturn in aggregate market turnover was on the back of a 92.54% week-on-week increase in the volume traded across the short-dated new bonds. The Local Currency Yield curve tilted northward, led by a 113 basis points increase in average yield at the belly of the yield curve. Analysts believe the Monetary Policy Committee’s decision to raise the policy rate to 30% could likely pose a downside to market activity as it favors treasury bills…

12 Apr

New Bonds Drive Traded Volumes Up 459%

wontumionlineBusinessBond market

The bond market witnessed a significant increase in volume as trades in the new bonds experienced an uptick last week, reaching GH¢227.44million – a 459 percent increase from the previous week’s GH¢40.72million. Despite the increase in volume traded, liquidity on the fixed-income secondary market was lower than in the previous week. The secondary market yields on the new bonds rose over the week due to the ripple-effect of the hike in policy rate from 28 percent to 29.5 percent, while the old bonds – those which were not traded in during the Domestic Debt Exchange Programme (DDEP) – recorded a…

07 Mar

Bond Market Declines 52.50% In Market Turnover In February 2023

wontumionlineBusinessBond market, February 2023, GSE, GSE Composite Index

The bond market declined by about 52.50% year-on-year in market turnover in the month of February 2023. According to the Ghana Stock Exchange’s Summary of February 2023 Market Activities, the month closed with a total volume trade of 9.17 billion. This however represented a decline of 9.48% compared to the total volume traded in January 2023. Meanwhile, the stock market performed better in February 2023, compared to January 2023. According to the GSE, the GSE Composite Index did well in February 2023 to recover some of the losses recorded earlier in the year. Both the Composite and Financial Stock indices…

22 Feb

Bond Market: Turnover Declines 80.3% To ¢135.63 M

wontumionlineBusinessBond market, DDEP, turnover

Market activity on the bond market declined sharply as total turnover plummeted 80.3% to ¢135.63 million. This is coming after the government concluded the Domestic Debt Exchange Programme last week. The recorded transactions on bonds were not actual trades but mostly fund transfers from the non-eligible participants and exempted groups. On the front of the DDEP, the government achieved a participation rate of 84.91% of the reclassified outstanding principal of ¢97 billion as it concluded the DDEP. The total amount tendered, however, constituted 63% of the total outstanding principal on the eligible bonds presented in the exchange memorandum. Analysts believe…