Trading on the Ghana Fixed Income Market (GFIM) reached GHS 1.64 billion on September 4. Restructured government bonds, specifically those from the Domestic Debt Exchange Programme (DDEP), emerged as the primary driver of this activity.
These DDEP bonds generated GHS 677.61 million, representing 41.28% of the total market turnover. This made them the largest single segment of outright trading for the day. Investors continued to concentrate their funds in government securities, underscoring their central role in Ghana's financial landscape.
This strong performance in government bonds reflects the ongoing recalibration of Ghana's financial markets following the Domestic Debt Exchange Programme. The programme aimed to restructure the nation's debt to restore macroeconomic stability and secure an International Monetary Fund (IMF) bailout. The market's focus on sovereign debt indicates investor confidence, albeit cautious, in the government's fiscal consolidation efforts.
The official GFIM trading report for the day indicated 342 transactions across various instruments. These included government bonds, Treasury bills, corporate debt, and sell/buy-back transactions. Government-linked instruments collectively accounted for approximately 94.00% of all trading value, reinforcing the dominance of sovereign securities.
The most active individual security was the 9.10% DDEP bond maturing on February 10, 2032. This bond recorded GHS 448.63 million across eight transactions. This single bond alone represented 66.21% of all outright DDEP trading and 27.33% of the total GFIM turnover for the day. Its yield closed at 14.42%, a slight decrease from its opening yield of 14.56%, suggesting robust demand for this longer-dated security.
Other DDEP bonds also saw significant activity. The 2035 and 2036 securities each traded GHS 75.00 million. The February 2034 bond attracted GHS 38.50 million, and the February 2031 security traded GHS 20.00 million. These bonds closed with yields clustering around the mid-14.00% range, providing insight into how investors are currently pricing Ghana's restructured sovereign debt.
Sell/buy-back transactions also contributed substantially to the market's activity, accounting for GHS 507.86 million, or 30.94% of overall trading. These transactions are crucial for managing short-term liquidity and financing securities. The largest sell/buy-back trade involved the 8.50% DDEP bond maturing in February 2028, which recorded GHS 146.46 million. This indicates that a significant portion of market activity involves short-term funding strategies around government debt.
Treasury bills, which are short-term government debt instruments, accounted for GHS 357.54 million, or 21.78% of the total turnover. While lower in value than DDEP bonds, Treasury bills were the most active segment by number of trades, with 238 transactions. The most heavily traded Treasury bill matured on August 23, 2027, attracting GHS 84.00 million. This shows continued investor interest across the longer end of the Treasury bill maturity spectrum.
In contrast, corporate bonds generated only GHS 98.47 million, representing a mere 6.00% of total market turnover. This segment remains comparatively small despite ongoing efforts to deepen it as an alternative source of long-term financing for businesses. A significant portion of this corporate bond activity, GHS 98.27 million, was concentrated in two Ghana Cocoa Board (COCOBOD) bonds. The 13.00% COCOBOD bond maturing in August 2028 generated GHS 63.31 million, while the August 2027 security recorded GHS 34.97 million.
The continued dominance of government securities suggests that investors prioritize safety and liquidity in the current economic climate. The performance of DDEP bonds will be closely watched as Ghana navigates its debt restructuring and seeks to restore investor confidence. Future trading sessions will reveal whether corporate debt can gain more traction or if sovereign instruments will maintain their overwhelming market share.