Ghana’s fixed income market processed GHS 222.1 million across 145 transactions on Friday, October 31, 2025, with treasury bills once again dominating activity as investors maintained their preference for short term government securities to close out the month.
Treasury bills captured the lion’s share of Friday’s trading, accounting for GHS 159.9 million spread across 131 transactions. This concentration in bills continues a pattern that’s defined Ghana’s debt markets throughout 2025, where market participants consistently favor liquidity and flexibility over longer duration commitments despite improving economic conditions.
The most actively traded instrument Friday was a 91 day treasury bill maturing January 19, 2026, which recorded volume of GHS 51.9 million across 35 separate transactions. The security closed at 97.13 cedis, reflecting the typical pricing dynamics for near term government paper in the current rate environment.
New government bonds contributed GHS 50.4 million through 10 trades, with a February 2028 bond attracting significant interest. That security, carrying an 8.50% coupon, traded GHS 31.1 million across three transactions at a yield of 15.96% and price of 86.06 cedis per 100 cedis face value. The substantial discount to par illustrates how current market yields remain well above the coupon rates set when many bonds were originally issued.
Old series government bonds showed limited but notable activity Friday. A bond maturing September 2027 with an 18.80% coupon recorded volume of GHS 192,275 in a single transaction. The security closed at 104.61 cedis, trading above par thanks to its high coupon rate in today’s market. These pre restructuring bonds see sporadic trading as they offer different risk return profiles compared to post restructuring instruments.
Corporate bonds recorded GHS 1.6 million across just two transactions, with Ghana Cocoa Marketing Board once again dominating the corporate segment. A Cocoa Board bond maturing August 2027 with a 13% coupon accounted for the corporate activity, closing at 98.07 cedis. The quasi governmental entity’s securities consistently attract more investor interest than purely private sector issuers, reflecting both scale and implicit state backing.
Bank of Ghana bills added GHS 10 million through a single transaction. These central bank instruments, used primarily for monetary policy implementation, typically see less secondary market activity than treasury bills but serve crucial roles in liquidity management operations.
Friday’s trading volume represented a decline from Thursday’s session, when the market processed over GHS 613 million across 278 transactions. That Thursday performance had seen treasury bills command nearly 94% of activity, making Friday’s 72% share actually a more balanced distribution across security types, though treasury bills still dominated by any reasonable measure.
What’s striking about Friday’s numbers isn’t just the absolute volumes but how they fit into established patterns. Throughout October, Ghana’s fixed income market has consistently shown heavy institutional appetite for government securities, particularly at the short end of the yield curve, while corporate bonds struggle for meaningful traction.
The yield environment across Friday’s trading continued reflecting the elevated rate structure that’s persisted through 2025. Government bonds traded in the 15% to 16% range depending on maturity, offering attractive real returns given Ghana’s inflation has moderated to around 11.5% as of recent readings. These yields compensate investors for sovereign risk while providing genuine purchasing power gains.
For market observers, Friday’s session reinforced several key themes. First, treasury bills remain the preferred destination for most institutional capital seeking short term deployment options. Second, government bonds see selective interest concentrated in specific maturities. Third, corporate bonds continue facing liquidity challenges despite yields that should theoretically attract capital.
The concentration in treasury bills creates both opportunities and tensions for Ghana’s debt management. Strong investor appetite allows government to continuously roll over short term funding at manageable rates. However, this heavy reliance on bills rather than longer dated bonds creates refinancing pressure, forcing authorities to repeatedly tap markets instead of locking in longer term financing.
Friday’s trading also highlighted the ongoing challenge of corporate bond market development. With government securities offering 15% plus yields backed by sovereign credit, corporate issuers must price bonds at even higher rates to attract capital, creating affordability challenges. Limited financial disclosure and thin secondary market liquidity make corporate credit analysis difficult and position sizing risky for larger institutional investors.
The Ghana Fixed Income Market platform has evolved to provide electronic trading infrastructure displaying live, executable prices primarily for government securities. Friday’s 145 transactions spread across different security types indicate genuine market participation rather than just a handful of large block trades dominating the numbers.
What Friday’s data ultimately demonstrates is that Ghana’s fixed income market continues functioning effectively for its core purpose of facilitating government securities trading. The system provides price discovery, liquidity, and transaction efficiency for treasury bills and selected government bonds. Whether that functionality can expand to encompass more vibrant corporate bond trading remains an open question.
As October closed, the month’s trading patterns showed remarkable consistency. Treasury bills anchored daily activity, government bonds attracted selective interest based on specific maturity profiles and coupon structures, and corporate issuers found limited investor appetite despite attractive nominal yields.
Looking ahead into November, market participants will be watching whether these patterns persist or whether any shifts emerge in investor preferences. The government’s announced plans to issue GHS 75.7 billion in treasury securities during the fourth quarter, including both bills and bonds, will test whether investor appetite can absorb increased supply without significant yield adjustments.
For institutional portfolio managers, Friday’s market offered the usual trade offs. Treasury bills provide liquidity and competitive yields but require constant reinvestment as they mature. Government bonds offer higher yields and longer duration but trade less frequently. Corporate bonds promise yield pickup but come with credit analysis challenges and exit strategy concerns.
The fixed income market’s health matters significantly for Ghana’s broader financial system and economic development. Government financing needs require a functioning secondary market that provides price discovery and liquidity. Corporate bond market development, while currently lagging, remains crucial for expanding business financing options beyond traditional bank lending.
Friday’s close to October reinforced that while Ghana’s fixed income market has made significant strides in recent years, particularly in government securities trading infrastructure and transparency, developing a truly diversified debt market that encompasses vibrant corporate bond activity remains an ongoing challenge. The structural factors driving current patterns, from regulatory constraints on institutional holdings of corporate debt to limited credit rating infrastructure, suggest these dynamics likely persist absent significant policy interventions or market structure reforms.
