Ghana’s fixed-income market recorded a total turnover of GHS 968.22 million on Wednesday, September 16. This significant activity was largely due to Treasury bills, which dominated trading as investors continued to focus on short-dated government instruments.
The market’s turnover increased by approximately 9.6% from the previous session’s GHS 883.18 million. Treasury bills alone accounted for GHS 624.64 million, representing 64.5% of the total market turnover. This made them the primary source of liquidity during the trading session.
This concentration of activity in short-term instruments reflects a broader trend in Ghana’s financial landscape. Investors are managing cash against a backdrop of lower short-term yields and evolving expectations for interest rates. The preference for shorter duration securities provides flexibility and reduced exposure to interest rate fluctuations. This strategy is common in periods of economic adjustment or uncertainty, allowing investors to re-evaluate their positions more frequently.
Data from the Ghana Fixed Income Market (GFIM) clearly shows this preference. Treasury bills, DDEP bonds, and sell/buy-back transactions together generated GHS 957.69 million. This figure represents almost 99% of all market activity. This left very little turnover in conventional government bonds and corporate debt. The dominance of Treasury bills was also evident in the number of transactions, with 283 out of 335 trades, or 84.5%, involving these instruments.
Within the Treasury bill segment, 364-day instruments were particularly active, generating GHS 338.63 million. This accounted for 54.2% of all Treasury bill turnover. The 91-day segment saw GHS 174.83 million in trades, while 182-day bills contributed GHS 111.18 million. The most actively traded individual security was a 91-day bill maturing on December 14, 2026, which recorded GHS 169.77 million across 59 transactions. This single instrument represented over 27% of Treasury bill turnover and about 17.5% of the entire GFIM session.
DDEP bonds remained the second-largest outright securities category, recording GHS 175.82 million across 18 trades. The February 15, 2028 DDEP bond, with an 8.50% coupon, was the most active in this segment. It generated GHS 68.39 million across four trades, accounting for almost 39% of total DDEP turnover. Sell/buy-back transactions also contributed significantly, reaching GHS 157.23 million across only 12 trades. This indicates large individual transactions in this segment. The February 8, 2033 DDEP bond dominated this area with GHS 116.42 million across three transactions.
The continued focus on short-term government debt suggests that market participants prioritize liquidity and capital preservation. This trend could influence future government borrowing strategies, potentially leading to a greater issuance of shorter-dated instruments. Policymakers will closely monitor these market dynamics to ensure stable financing for government operations. The Bank of Ghana’s monetary policy decisions will also play a crucial role in shaping investor sentiment and the attractiveness of various debt instruments. A sustained preference for short-term debt might also signal investor caution regarding longer-term economic outlooks or inflation expectations.