Ghana’s fixed income market recorded robust trading activity on Tuesday, November 12, with total transactions reaching GH¢563.29 million across 294 trades as investors continued to show strong appetite for government securities amid improved economic fundamentals.
Treasury bills dominated trading volumes, accounting for GH¢279.86 million across 247 transactions. New Government of Ghana (GoG) notes and bonds attracted GH¢277.80 million through 38 trades, while corporate bonds recorded GH¢4.11 million in six transactions.
The most actively traded instrument was a government bond maturing on February 16, 2027, with the security code GOG BD 16/02/27 A6143 1838 8.35, which saw volume of GH¢157.83 million across 21 trades. The bond traded at a yield of 16.00% with a closing price of 91.5047, reflecting investor demand for medium term government paper.
Treasury bill activity centered on a security maturing January 26, 2026, which recorded GH¢177.52 million in trading volume across 26 transactions. The bill closed at a price of 98.3254, indicating yields remain attractive relative to the current inflation environment despite recent declines in money market rates.
Old government bonds saw limited activity with just one trade worth GH¢163,194. The bond maturing June 11, 2029, with a coupon of 19.80% traded at a yield of 15.99% and closed at 110.0227. The premium pricing reflects the bond’s high coupon rate relative to current market yields.
Corporate bonds attracted modest interest with GH¢4.11 million traded across six transactions. The most active corporate security was a Cal Bank (CMB) bond maturing August 30, 2027, with a 13.00% coupon. The bond traded at a closing price of 98.8625, suggesting yields on corporate paper remain elevated compared to shorter dated government securities.
Sell and buyback trades in government notes and bonds totaled GH¢1.35 million through two transactions. The largest repo transaction involved a long dated government bond maturing February 2, 2038, which traded at a yield of 10.99% with a closing price of 93.3956.
The strong fixed income trading activity comes as Ghana’s domestic debt markets continue to recover following the country’s successful debt restructuring programme. Treasury bill rates have fallen dramatically from 28.9% at the peak of the debt crisis to current levels around 10.7%, the lowest in 14 years.
Market analysts attribute increased investor appetite for government securities to multiple factors including restored confidence in Ghana’s fiscal management, single digit inflation, and the successful completion of the International Monetary Fund (IMF) Extended Credit Facility programme scheduled to end in May 2026.
Inflation declined from 23.8% in December 2024 to 8% by October 2025, bringing real yields on government securities back into positive territory. The dramatic inflation decline has made fixed income instruments more attractive to both local and foreign investors seeking stable returns.
The Bank of Ghana (BoG) has maintained an accommodative monetary policy stance while signaling readiness to adjust rates if inflationary pressures reemerge. The central bank’s Monetary Policy Committee reduced the policy rate from 30% at its peak to current levels, supporting lower yields across the fixed income curve.
Government’s zero Bank of Ghana financing policy announced in the 2026 budget means all deficit financing will come through market based instruments rather than central bank advances. The policy is expected to maintain discipline in government borrowing while deepening domestic capital markets.
Finance Minister Dr Cassiel Ato Forson’s Medium Term Debt Management Strategy for 2025 to 2028 prioritizes concessional borrowing from multilateral institutions while gradually rebuilding domestic market financing capacity. The strategy aims to keep public debt below 70% of GDP while extending debt maturity profiles.
Institutional investors including pension funds, insurance companies, and asset managers have been actively repositioning portfolios toward longer dated government securities to lock in yields before anticipated further rate declines. Fund managers expect the BoG to continue gradual monetary easing if inflation remains subdued.
The government bond market has seen increased participation from foreign investors following Ghana’s successful Eurobond restructuring in October 2024. The exchange of US$13.1 billion in outstanding Eurobonds with a 98.6% participation rate restored international investor confidence and reopened access to offshore markets.
Corporate bond issuance remains limited compared to government securities, reflecting the relatively underdeveloped nature of Ghana’s corporate debt market. Banks and financial institutions dominate corporate bond listings, with few industrial or commercial companies tapping the market for long term financing.
Market infrastructure improvements including the Ghana Fixed Income Market platform have enhanced trading transparency and price discovery. The electronic trading system allows real time visibility of bids, offers, and executed trades, reducing information asymmetries that previously constrained market development.
Secondary market liquidity for government securities has improved significantly compared to the crisis period when many investors were unwilling to trade due to uncertainty about debt sustainability. Bid ask spreads have narrowed and trading volumes have recovered to levels not seen since before the debt restructuring.
The yield curve has normalized with longer dated securities offering appropriate risk premiums over shorter maturities. During the crisis period, the curve was severely inverted with short term rates exceeding long term rates, reflecting acute concerns about government’s ability to roll over maturing debt.
Looking ahead, market participants expect continued strong demand for government securities as improved macroeconomic fundamentals attract both domestic and international investors. The fiscal consolidation measures outlined in the 2026 budget should support further yield compression if government meets its deficit targets.
However, some analysts caution that global interest rate trends, particularly decisions by the United States Federal Reserve, could impact portfolio flows into emerging market bonds including Ghana. Rising US Treasury yields typically attract capital away from riskier emerging market assets.
The government faces significant refinancing needs in 2026 as domestic bonds mature, requiring careful debt management to avoid bunching and rollover risks. The finance ministry has indicated it will use a combination of treasury bills, medium term notes, and bonds to meet financing requirements while maintaining a balanced maturity profile.
