Treasury bills captured 63.88% of the Ghana Fixed Income Market (GFIM) turnover, reaching GHS 1.03 billion. This significant shift occurred as overall market turnover decreased by 27.88% to GHS 1.61 billion on Monday, October 12, compared to GHS 2.23 billion on Friday, October 9.
The market saw a sharp rotation away from restructured government bonds, known as Domestic Debt Exchange Programme (DDEP) bonds, and into shorter government paper. DDEP bond turnover plummeted by 64.97% to GHS 575.70 million from GHS 1.64 billion. This decline in DDEP bond trading largely explains the overall contraction in the market's value.
This trend highlights investor preference for less risky, shorter-term government securities amidst ongoing economic adjustments in Ghana. The country has been navigating a challenging fiscal environment, with the DDEP being a key component of its debt restructuring efforts. Investors are seeking stability and liquidity, which Treasury bills typically offer more readily than longer-dated DDEP bonds.
The increased activity in Treasury bills suggests that market participants are prioritising short-term liquidity and lower risk. Treasury bills represented 63.88% of total market turnover, a substantial increase from 24.26% in the previous session. The number of transactions across the GFIM nearly doubled, rising by 93.11% to 2,663 from 1,379, even as the average value per transaction fell by 62.65% to GHS 604,575.
Demand for Treasury bills concentrated heavily in the 364-day segment, where turnover increased by 67.99% to GHS 831.61 million. This segment alone accounted for 80.86% of all bill turnover. The most actively traded instrument was a bill maturing on August 2, 2027, which recorded GHS 150.23 million in trades. Its closing yield declined to 8.8593%, indicating stronger demand.
The 91-day Treasury bill segment also experienced a sharp expansion in trading activity. Turnover in this segment jumped by almost 588% to GHS 182.83 million from GHS 26.58 million. A single instrument maturing on December 28, 2026, drove most of this increase, trading GHS 130.21 million across 1,813 transactions. This suggests strong liquidity around that specific maturity.
Conversely, the 182-day Treasury bill segment was an exception, seeing its turnover decline by 30.10% to GHS 13.99 million. This indicates a selective preference among investors even within the Treasury bill market, favouring either very short-term or longer-term bills over the mid-range.
For DDEP bonds, activity concentrated in four instruments, with the February 2032 bond leading with GHS 307.27 million. Its closing yield rose by 14 basis points to 14.51%, while its price declined. The February 2030 bond followed with GHS 124.88 million, and its yield declined by 17 basis points to 14.20%, signalling stronger pricing support despite lower turnover. These mixed yield movements suggest investors are differentiating between various DDEP maturities rather than applying a uniform repricing.
This market behaviour reflects investors' ongoing assessment of Ghana's economic stability and debt sustainability. The preference for Treasury bills over DDEP bonds indicates a cautious approach, prioritising shorter-term, lower-risk assets. This trend will likely continue as the market monitors government fiscal performance and broader economic indicators. Policymakers will observe these shifts closely, as they impact the government's borrowing costs and overall financial market health.