Trading activity on the Ghana Fixed Income Market (GFIM) surged to GHS 1.63 billion on Thursday, September 17. This significant increase reflects a sharp rise in Debt Exchange Programme (DDEP) bond transactions and sell/buy-back activity. The expanded liquidity moved beyond traditional Treasury bills, lifting daily turnover by almost 70%.
Total securities traded reached GHS 1.632 billion across 924 transactions. This compares to GHS 968.22 million across 335 trades in the previous session. The 68.5% increase in turnover was accompanied by a near-threefold rise in the number of transactions. Restructured government securities, specifically DDEP bonds, saw outright trading jump to GHS 511.96 million, representing 31.4% of the market. Sell/buy-back transactions in Government of Ghana securities contributed GHS 432.28 million, accounting for 26.5% of turnover.
This surge in DDEP and repo activity indicates a shift in market dynamics. It suggests growing investor confidence or increased necessity to trade these instruments. The broader Ghanaian economy has been navigating a challenging period, including a domestic debt restructuring. This market activity provides a crucial barometer for investor sentiment regarding the government's fiscal health. The concentration of liquidity in sovereign securities, including Treasury bills, DDEP bonds, and sell/buy-back transactions, accounted for 99.7% of all trading. This underscores the market's reliance on government-backed instruments.
The Norvan Reports highlighted the pronounced rise in DDEP activity. Turnover increased from GHS 175.82 million on Wednesday to GHS 511.96 million. This represents a 191.2% increase, even as the number of outright DDEP transactions decreased from 18 to 13. This suggests that larger individual transaction sizes, rather than more frequent smaller trades, drove the increase. This trend points to institutional investors or large-scale traders engaging with these restructured bonds.
The implications of this market shift are significant for Ghana's financial landscape. Increased trading in DDEP bonds suggests that these instruments are gaining acceptance and liquidity in the secondary market. This is crucial for the success of the domestic debt restructuring programme. It also provides a mechanism for investors to manage their portfolios. The use of restructured sovereign securities as collateral in short-term liquidity transactions, known as repo-style sell/buy-back, is also noteworthy. This indicates that financial institutions are finding ways to utilize these assets for their operational needs.
The most heavily traded DDEP security was the 8.50% bond maturing February 15, 2028. It recorded GHS 250.93 million across six transactions. This bond closed at a yield of 12.06% and a price of approximately GHS 95.46. The 9.10% February 10, 2032 bond followed with GHS 199 million across three trades. These two instruments alone accounted for almost 88% of outright DDEP turnover. This highlights specific investor preferences for certain maturities and yields within the restructured bond universe.
Activity in repo-style sell/buy-back transactions also showed strong growth. Turnover rose 174.9% from GHS 157.23 million to GHS 432.28 million. The February 8, 2033 DDEP bond dominated this segment, recording GHS 176 million across 11 transactions. This suggests dealers are increasingly using these restructured securities as collateral. This practice helps to facilitate short-term liquidity in the market. It also provides a mechanism for managing interest rate risk and funding needs.
Treasury bill turnover increased more moderately by 9.2%, from GHS 624.64 million to GHS 682.34 million. However, the internal composition showed a striking divergence. The 364-day segment accounted for GHS 510.72 million, or almost 75% of all Treasury bill turnover. This occurred despite recording only 100 transactions. By contrast, 91-day bills generated GHS 133.55 million but accounted for 737 transactions. This pattern indicates considerably larger individual transaction sizes in longer-dated Treasury bills. Activity at the shortest end of the curve remained more fragmented, with smaller, more frequent trades.
The single most heavily traded Treasury bill was the 364-day security maturing July 26, 2027. It recorded GHS 240.05 million across six trades. This instrument alone accounted for more than 35% of Treasury bill turnover. It also represented almost 15% of total GFIM activity for the session. This specific security's popularity underscores investor demand for longer-term, relatively stable government debt. The market will continue to watch these trends closely. They offer insights into investor confidence and liquidity management strategies in Ghana's financial markets.