Ghana's Fixed Income Market (GFIM) recorded a total turnover of GHS 2.23 billion on October 9. This figure remained broadly stable compared to the previous day, despite a dramatic 67.1% reduction in the number of transactions.
The stable turnover, alongside a sharp decline in transaction count, signals a significant shift in market activity. Trading moved away from many small Treasury bill transactions towards larger, institutional trades involving government bonds issued under Ghana's Domestic Debt Exchange Programme (DDEP). The average value per transaction consequently surged from GHS 533,700 on October 8 to approximately GHS 1.62 million on October 9, an increase exceeding 200%.
This change reflects a broader trend in Ghana's financial landscape, where the government's debt restructuring efforts continue to reshape investor behaviour. The DDEP, implemented to manage Ghana's public debt, has created a new class of government securities. These bonds are now attracting substantial institutional interest, as evidenced by their growing share of market liquidity. This shift indicates a re-evaluation of risk and return by major investors following the debt exchange.
According to Norvan Reports, DDEP securities solidified their position as the primary source of liquidity on the GFIM. Turnover in this segment increased by GHS 199.26 million, or 13.8%, rising from GHS 1.44 billion to GHS 1.64 billion. The share of DDEP bonds in total GFIM turnover climbed from 64.5% on October 8 to 73.6% on October 9, highlighting their increasing dominance.
The market's future will likely see continued focus on these DDEP bonds as institutional investors reposition their portfolios. The concentration of activity in specific DDEP maturities, particularly the February 2032 GC-6 and February 2030 GC-4 bonds, suggests a preference for intermediate-to-long-term instruments. Decision-makers and market participants will closely monitor yields and trading volumes in these segments for signs of market confidence and liquidity. The shift away from short-term Treasury bills also has implications for government borrowing strategies and the overall cost of debt.
The number of DDEP bond transactions remained unchanged at 50, indicating that the increase in turnover was driven entirely by larger average transaction sizes. The average DDEP trade rose from approximately GHS 28.88 million to GHS 32.87 million. This pattern suggests that large institutional investors were rebalancing significant portfolios rather than broad retail participation returning to the market. This institutional focus underscores the sophistication of current market players.
Activity within the DDEP segment also diversified across maturities. On October 8, the February 2029 GC-3 bond accounted for GHS 892.72 million, nearly 62% of total DDEP turnover. By October 9, trading shifted, with the February 2032 GC-6 bond leading with GHS 625.93 million across just four transactions. Its closing yield eased by 18 basis points to 14.37%. The February 2030 GC-4 bond attracted another GHS 501.61 million through 10 transactions, with its yield falling by nine basis points to 14.37%. Together, these 2030 and 2032 securities generated GHS 1.13 billion, almost 69% of the day's DDEP turnover, indicating strong interest in the intermediate-to-long section of the restructured curve.
Conversely, Treasury bill turnover decreased by GHS 213.65 million, or 28.3%, falling to GHS 541.63 million from GHS 755.28 million. Its share of the market declined from 33.7% to 24.3%. The number of Treasury bill transactions dropped significantly from 4,118 to 1,287, a decline of almost 69%. This fall in transaction count explains most of the overall reduction in market activity. Treasury bills accounted for over 98% of all GFIM transactions on October 8, but only approximately 93% on October 9. The centre of bill trading also moved further along the maturity schedule, with the August 2, 2027 bill leading the segment with GHS 175.88 million, closing at a yield of about 8.92%. This indicates a preference for slightly longer-dated bills, potentially to secure higher nominal returns.