Ghana’s fixed income market saw robust activity on Wednesday, October 9, with treasury bills dominating trading volumes as investors continued favoring short-term government securities over longer-dated bonds.
The 91-day treasury bill series attracted the heaviest trading, with the October 20, 2025 maturity recording volume of GH¢ 553.8 million, representing the single largest transaction in any fixed income security during the session. This concentration in the shortest tenor reflects persistent investor preference for liquidity and flexibility despite Ghana’s improving macroeconomic fundamentals.
Overall treasury bill trading spanned all three standard tenors. The 182-day bills saw substantial activity, led by the January 26, 2026 maturity with GH¢ 128.8 million in volume. Meanwhile, 364-day bills recorded meaningful transactions, particularly in the July 27, 2026 maturity, which traded GH¢ 72.9 million.
Pricing across the treasury bill curve remained relatively stable, with 91-day bills trading between 99 and 100, reflecting minimal discount rates. The 182-day and 364-day bills showed deeper discounts consistent with their longer holding periods, with prices ranging from 93 to 100 for six-month bills and 86 to 100 for one-year maturities.
Government bonds attracted more selective interest. Among new series bonds, the 2023-GC-7 maturing in 2033 recorded the highest volume with GH¢ 228.8 million across 10 separate trades. The 2023-GC-9 bond maturing in 2035 followed with GH¢ 220 million in volume across six transactions, while the 2023-GC-2 bond maturing in 2028 saw GH¢ 130.2 million traded across 26 deals.
These bonds carry coupon rates between 8.35% and 10%, with yields settling in the 15% to 16% range. The government bond yield environment of 15 to 16 percent still reflects significant risk premiums despite Ghana’s improving fundamentals, suggesting investors remain cautious about longer-term commitments despite the country’s economic stabilization progress.
The yield curve displayed its characteristic upward slope, with shorter maturities offering lower yields and longer-dated securities commanding higher returns to compensate for duration risk and uncertainty. This normal curve shape indicates market participants expect relatively stable conditions but demand compensation for locking in capital over extended periods.
Old series government bonds, those issued before Ghana’s recent debt restructuring, showed no trading activity during the session. These securities carry yields ranging from 6.99% to 35.58%, reflecting their varied credit histories and restructuring terms. The absence of trading suggests these bonds remain largely in buy-and-hold portfolios rather than active trading books.
Corporate bond activity remained modest but present. Ghana Cocoa Board’s 2028 maturity bond recorded the most corporate sector volume with GH¢ 5.2 million traded. Other corporate issuers with bonds available in the market include Letshego Ghana PLC, Bayport Savings and Loans PLC, Izwe Savings and Loans PLC, Kasapreko PLC, and Quantum, though many saw limited or no trading during the session.
The corporate bond market’s relatively quiet activity reflects several realities. Corporate issuers face higher funding costs than the government, limiting new issuance. Secondary market liquidity remains thin, making position sizing difficult for larger investors. And with government securities offering attractive yields, corporate bonds must price at even higher rates to attract capital, creating affordability challenges for issuers.
Bank of Ghana bills, the central bank’s monetary policy instruments, showed limited activity. The 273-day maturity recorded volume of 538,574, while 56-day bills saw minimal trading. These securities serve primarily as liquidity management tools rather than investment vehicles, explaining their lower secondary market activity compared to government securities.
Sell/buyback transactions, a form of short-term financing using bonds as collateral, remained quiet with only two bonds involved. The 2023-GC-3 series recorded GH¢ 1.3 million in sell/buyback volume, while 2023-GC-6 saw GH¢ 65.5 million. These repurchase agreement structures provide temporary liquidity to bondholders while allowing counterparties to earn returns on short-term cash deployments.
No collateralized repo or Global Master Repurchase Agreement (GMRA) trades were recorded during the session. The absence of repo activity suggests adequate liquidity in the banking system, reducing the need for collateralized borrowing among financial institutions.
The trading patterns reveal several characteristics of Ghana’s fixed income market. Liquidity concentrates heavily in benchmark securities, particularly the most recently issued government bonds and treasury bills with near-term maturities. Investors clearly favor securities where they can enter and exit positions easily, reflecting ongoing uncertainty despite improved economic conditions.
The substantial volume in 91-day bills versus longer tenors illustrates how investors continue rolling short-term positions rather than extending duration. This behavior, while understandable given Ghana’s recent economic challenges, creates refinancing pressure for the government, which must continually reissue short-term debt rather than locking in longer-term funding at today’s rates.
Market participants watch closely for signs that investor confidence might shift toward longer maturities. Such a transition would benefit Ghana’s debt management by reducing rollover frequency and providing more predictable financing costs. However, until yields compress significantly or investors become more confident about medium-term stability, the bias toward short-term securities likely persists.
The fixed income market’s depth across multiple security types and maturities nonetheless provides important portfolio allocation options. From 91-day bills to bonds maturing in 2039, investors can construct yield curves matching their specific risk tolerances and investment horizons, even if trading concentrates in particular segments.
Source: newsghana.com.gh
