Ghana’s Fixed Income Market closed January with a total trading volume of GH¢116.7 million across 1,298 transactions, reflecting steady investor engagement amid evolving economic conditions.
The market’s performance was driven by strong activity in government securities, particularly Treasury Bills, which accounted for the largest single trade of the month.
Treasury Bills Dominate Trading
The standout transaction for January was the 364-Day Treasury Bill (GOG-BL-17/02/25-A6443-1890-0), which saw a staggering 70.9 million units traded at a closing price of GH¢98.81. This bill, maturing in February 2025, underscored investor appetite for short-term government debt, likely fueled by its perceived stability amid fluctuating yields in longer-dated instruments.
New Government of Ghana (GOG) bonds also attracted attention, particularly the 2023-GC-1 bond (GHGGOG069915), a 4-year note with an 8.35% coupon. It closed at a yield of 26.22%, with over 10.6 million units traded. Meanwhile, longer-term bonds such as the 2036-maturing GOG-BD-05/02/36-A6152-1838-9.70 saw yields climb to 29.46%, signaling investor caution about inflation and fiscal sustainability over the decade.
Corporate Bonds Show Mixed Signals
Corporate debt activity remained muted, though select issuers drew interest. AFB’s 2025 bond (GHCAFB049970) rose sharply, closing at GH¢98.75, up from an opening price of GH¢92.52. In contrast, CMB bonds faced headwinds, with their 2027 note (GHGCMB071664) plummeting to GH¢45.82, reflecting broader concerns about corporate liquidity in sectors tied to commodity price volatility.
Repo Market Activity
Collateralized repurchase agreements (repos) totaled GH¢1.52 billion, with GMRA trades adding GH¢135 million. These figures suggest institutions prioritized short-term liquidity management, possibly hedging against tighter monetary conditions. The 2023-GC-5 bond (GHGGOG069956) was a key player in sell/buy-back trades, with GH¢37.9 million in volume, underscoring its role as a liquidity tool for financial institutions.
Investor Sentiment and Economic Outlook
Analysts noted the yield curve’s steepening, particularly in bonds maturing post-2030, which saw yields edge higher. “The uptick in long-term bond yields reflects lingering concerns about debt sustainability and global rate trends,” remarked Ama Serwah, a fixed-income strategist at Accra Capital Advisors. “However, robust demand for Treasury Bills indicates confidence in the government’s near-term fiscal management.”
February’s market dynamics will likely hinge on the Bank of Ghana’s upcoming policy decision and inflation data. With corporate bond issuance remaining sparse, traders anticipate continued focus on government securities, particularly as the state prepares to roll over maturing debt.
Data sourced from the Ghana Fixed Income Market’s Trading Report for January 31, 2025.
The January figures paint a picture of a market balancing short-term safety with long-term caution. While Treasury Bills dominate, the rising yields on longer-dated bonds suggest investors are pricing in risks tied to election-year spending and global macroeconomic uncertainty. Corporate bonds, meanwhile, remain a niche segment, with activity largely confined to high-grade issuers. For policymakers, the repo market’s vitality signals institutional resilience, but the corporate sector’s struggles highlight the need for reforms to unlock private capital flows.