Ghana Fixed Income Market Trades Fall to GHS 4.18 Billion

Ghana's fixed income market experienced a sharp decline in trading activity during the week of May 25 to May 29, 2026. Total market turnover fell to GHS 4.18 billion. This figure represents a 39.69 percent decrease from the GHS 6.93 billion traded in the previous week.

This significant drop indicates weaker activity across most segments of the fixed income market. Treasury bills, despite a decline, remained the dominant asset class. They accounted for GHS 2.34 billion in weekly trades, down from GHS 3.44 billion previously. This represents a 31.95 percent reduction.

The broader decline reflects a shift in investor behaviour within Ghana's financial landscape. Data from the Ghana Fixed Income Market (GFIM) often provides insights into investor confidence and liquidity preferences. This trend aligns with periods of economic uncertainty where investors typically favor safer, short-term instruments like Treasury bills. The dominance of Treasury bills also highlights the ongoing focus on managing government debt and liquidity in the local market.

Norvan Reports indicates that sell-buy back trades also fell significantly. They dropped by 49.84 percent from GHS 2.72 billion in the previous week to GHS 1.36 billion. Debt Exchange Programme (DDEP) bonds recorded GHS 474.69 million in traded volume. This figure is down from GHS 689.01 million a week earlier, reflecting a 31.11 percent decline. New Government of Ghana bonds remained thinly traded, with turnover of GHS 127,423.

The sharpest decline affected corporate securities, with traded volume plummeting to GHS 3.22 million. This is a massive drop from GHS 87.69 million, representing a 96.32 percent decrease. This suggests that liquidity in the non-sovereign segment remains thin. The overall picture shows a softer fixed income market. Investors continue to favor Treasury bills while activity in longer-dated bonds remains selective.

This slowdown in fixed income trading may suggest increased portfolio caution among investors. It could also indicate lower reinvestment activity or a temporary pause after stronger trading in the preceding week. The continued preference for short-term instruments reflects a market where yields have declined. However, liquidity and flexibility remain crucial considerations for investors. This cautious stance could influence future government borrowing strategies and corporate financing decisions.

Mixed movements were observed on the yield curve for various instruments. The 4-year yield eased to 10.5 percent from 10.92 percent. Conversely, the 5-year yield increased slightly to 9.8 percent from 9.72 percent. Overall, the significant drop in market activity points to a need for careful monitoring by financial regulators and policymakers. These trends impact the cost of borrowing for the government and businesses alike. They also affect the overall health and stability of Ghana's financial markets.