Ghana’s secondary debt market experienced a slowdown in trading activity, with the Ghana Fixed Income Market (GFIM) recording GH¢857.3 million in total traded volume across 768 transactions on March 10, 2026. The figure represents a notable decline compared with the GH¢1.07 billion recorded during the previous trading session, reflecting a cooling in investor activity.

The drop in market turnover was largely attributed to reduced institutional demand for longer-dated government securities, as investors continued to position themselves cautiously amid Ghana’s ongoing economic stabilization efforts.

Despite the overall decline in market activity, Treasury bills remained the dominant instruments, attracting the majority of trading interest as investors favored shorter-duration government securities over longer-term bonds.

Overview of Ghana’s Secondary Debt Market

The Ghana Fixed Income Market (GFIM) is the country’s primary platform for trading government and corporate debt securities in the secondary market.

The market enables investors to buy and sell previously issued bonds and Treasury bills, providing liquidity to the government securities market.

Participants in the GFIM typically include:

• commercial banks
• pension funds
• insurance companies
• asset managers
• institutional investors

Secondary market activity is closely monitored because it provides insight into investor sentiment, interest rate expectations, and overall financial market stability.

Trading Volume Declines from Previous Session

On March 10, 2026, GFIM recorded:

• GH¢857,315,159 in total trading volume
• 768 individual transactions

This marked a decline from the GH¢1.07 billion traded during the previous session, indicating a moderation in market activity.

The reduction in trading volumes was largely driven by a pullback in demand for longer-dated government bonds, which tend to carry greater interest rate and economic risks.

When economic conditions remain uncertain, investors often shift toward shorter-term securities that offer greater liquidity and reduced exposure to interest rate fluctuations.

Treasury Bills Dominate Market Activity

Treasury bills accounted for the largest share of trading activity during the session.

The short-term government instruments attracted GH¢454,426,293 in trading volume across 676 transactions.

This represented more than 53% of the total market turnover, highlighting the continued preference among investors for short-duration government securities.

The large number of Treasury bill transactions compared with other instruments underscores how investors are prioritizing liquidity and risk management while monitoring Ghana’s economic recovery.

Most Actively Traded Treasury Bill

The 364-day Treasury bill maturing on March 8, 2027, emerged as the most actively traded single instrument during the session.

The security recorded:

• GH¢111,886,161 in total trading volume
• 22 separate deals
• Closing price of 91.66

The strong interest in this instrument suggests that investors are willing to extend their investment horizon slightly beyond very short-term maturities, but remain cautious about locking funds into long-term debt.

Government Bonds Lead Category Volume

While Treasury bills dominated transaction counts, new Government of Ghana (GoG) notes and bonds led the market in terms of total value traded.

These instruments recorded GH¢1,442,431,199 in total volume across 18 transactions.

Government bonds typically attract larger transaction sizes because they are often traded by institutional investors managing large portfolios.

Most Active Government Bond

The most actively traded bond was the 2023-GC-1 bond, identified as GOG-BD-16/02/27.

This bond generated:

• GH¢668,050,000 in trading volume
• 12 transactions
• Closing yield of 9.90%
• End-of-day price of GH¢98.63

Bond yields reflect the return investors expect to earn, while bond prices move inversely to yields.

A yield close to 10% indicates the relatively high interest rates currently prevailing in Ghana’s fixed income market.

Other Government Bond Activity

Several additional government bonds also recorded trading activity during the session.

2023-GC-2 Bond

The 2023-GC-2 bond, which matures in February 2028, recorded:

• GH¢180,000,000 in trading volume
• 2 transactions
• Closing yield of 10.74%

2023-GC-6 Bond

Another instrument, the 2023-GC-6 bond, which matures in February 2032, closed with:

• Yield of 12.40%
• End-of-day price of GH¢86.40

The higher yield on this longer-dated bond reflects the increased risk associated with long-term government securities.

Investors typically demand higher yields to compensate for inflation risk and interest rate uncertainty over longer time horizons.

Corporate Bond Trading Remains Limited

Corporate bond activity on the GFIM remained subdued during the session.

Total corporate bond trading reached GH¢2,197,300 across four transactions, representing a very small share of the overall market volume.

This highlights the continued dominance of government securities within Ghana’s fixed income market.

COCOBOD Bonds Lead Corporate Segment

Within the corporate bond category, Ghana Cocoa Board (COCOBOD) bonds accounted for the majority of activity.

The CMB bond maturing in August 2026 generated:

• GH¢2,179,100 in trading volume
• 3 transactions
• Closing price of GH¢101.79

COCOBOD bonds are among the most actively traded corporate debt instruments in Ghana because the organization plays a critical role in the country’s cocoa industry, one of its largest export sectors.

No Trades in Old Government Bonds

Interestingly, no transactions were recorded in Old Government of Ghana (GoG) Notes and Bonds during the session.

This lack of activity may reflect investor preference for newer securities with more favorable yields or maturities.

In secondary markets, older bonds can sometimes experience reduced liquidity if investors shift their attention to newer issuances.

Historical Context: Ghana’s Debt Market Recovery

Ghana’s debt market has undergone significant restructuring in recent years following the country’s economic crisis and debt restructuring program.

In 2022 and 2023, Ghana faced severe financial challenges, including:

• high inflation
• currency depreciation
• rising public debt
• reduced access to international capital markets

As part of its economic recovery strategy, Ghana implemented a Domestic Debt Exchange Programme (DDEP) aimed at restructuring government bonds held by domestic investors.

The program sought to reduce the government’s debt burden while restoring fiscal stability.

Since then, Ghana’s fixed income market has gradually stabilized, with trading activity returning to the secondary market.

Why This Development Matters

The recent slowdown in GFIM trading activity provides insight into broader trends shaping Ghana’s financial markets.

1. Investor Risk Management

The preference for Treasury bills indicates that investors are prioritizing short-term liquidity and lower risk exposure.

2. Economic Stabilization Monitoring

Market participants continue to closely monitor Ghana’s economic stabilization progress, including inflation trends and fiscal policy developments.

3. Yield Signals

Government bond yields provide important signals about market expectations for interest rates and inflation.

4. Market Liquidity

Secondary market activity helps maintain liquidity in government securities, which is essential for the smooth functioning of financial markets.

Risks and Considerations

Although Ghana’s fixed income market continues to function and provide liquidity for government securities, several risks and structural challenges remain that could influence investor behavior and overall market stability.

These risks are particularly relevant as Ghana continues its economic stabilization and debt restructuring process following the financial pressures experienced in recent years.

1. Interest Rate Volatility

One of the primary risks affecting Ghana’s bond market is interest rate volatility.

Government bond prices and yields are highly sensitive to changes in interest rates. When interest rates rise, existing bonds typically lose value because newly issued bonds offer higher yields.

Investors in longer-dated government bonds face greater exposure to this risk because their investments are locked in for longer periods.

If the Bank of Ghana maintains a tight monetary policy stance to control inflation, yields on government securities may remain elevated.

Higher yields can discourage investors from purchasing long-term bonds because they may prefer to wait for potentially better rates in future issuances.

As a result, demand may continue to concentrate on short-term Treasury bills, which offer more flexibility and lower exposure to interest rate risk.

2. Inflation Risk

Inflation remains a key concern for investors in fixed income markets.

When inflation rises, the real return on bonds declines, reducing the purchasing power of the income generated from fixed interest payments.

For example, if a government bond offers a yield of 10% but inflation rises to 12%, the investor effectively experiences a negative real return.

Ghana has faced elevated inflation in recent years due to factors such as:

• currency depreciation
• rising global commodity prices
• fiscal imbalances
• supply chain disruptions

Although inflation has begun to stabilize in recent months, investors remain cautious about locking funds into long-term securities until inflation trends become more predictable.

This explains why Treasury bills continue to dominate trading activity.

3. Fiscal Sustainability Concerns

Government borrowing levels remain an important factor influencing investor confidence in Ghana’s debt market.

The government has implemented several reforms aimed at stabilizing public finances, including the Domestic Debt Exchange Programme (DDEP).

However, investors continue to monitor fiscal developments closely.

Key questions investors consider include:

• whether government debt levels will remain sustainable
• whether fiscal deficits will decline over time
• whether economic growth will generate sufficient tax revenue

If fiscal pressures intensify, investors may demand higher yields to compensate for increased risk, which could increase borrowing costs for the government.

4. Liquidity Risk in the Secondary Market

Secondary market liquidity is critical for the healthy functioning of any bond market.

Liquidity refers to the ease with which investors can buy or sell securities without causing significant price changes.

While the GFIM provides a platform for trading government securities, liquidity levels can fluctuate depending on investor participation.

Periods of reduced trading activity—such as the recent decline in market volume—can sometimes signal limited market liquidity.

Lower liquidity may create several challenges:

• wider bid–ask spreads
• higher transaction costs
• greater price volatility

For institutional investors managing large portfolios, liquidity risk can influence decisions about which securities to hold.

This is another reason why shorter-term Treasury bills often remain more attractive during uncertain periods.

5. Market Concentration Risk

Another structural issue in Ghana’s fixed income market is the dominance of government securities over corporate debt instruments.

As the latest trading session showed, corporate bond activity remains extremely limited.

This concentration means that the overall health of the fixed income market is heavily dependent on the performance of government debt instruments.

A more diversified market—with stronger corporate bond participation—would provide investors with additional investment options and reduce systemic risks.

Developing the corporate bond market remains an important long-term objective for Ghana’s financial sector.

6. External Economic Risks

Ghana’s debt market is also influenced by broader global economic conditions.

External risks include:

• changes in global interest rates
• fluctuations in commodity prices
• currency volatility
• shifts in international capital flows

For example, higher interest rates in advanced economies can attract capital away from emerging markets, potentially reducing demand for local government securities.

Global economic conditions therefore play an important role in shaping investor sentiment toward emerging market debt.

Looking Ahead

Despite the recent decline in trading volumes, Ghana’s fixed income market continues to play a critical role in supporting government financing and financial market development.

Several factors will likely shape the outlook for the GFIM and Ghana’s broader debt market in the coming months and years.

1. Continued Economic Stabilization

Ghana’s economic recovery efforts will remain a key driver of investor confidence.

Macroeconomic indicators such as:

• inflation trends
• exchange rate stability
• fiscal deficit levels
• GDP growth

will significantly influence investor sentiment.

If economic stabilization efforts continue to show progress, investors may gradually regain confidence in longer-term government bonds.

This could lead to increased demand for medium- and long-term securities.

2. Monetary Policy Direction

The Bank of Ghana’s monetary policy decisions will also play an important role in shaping the fixed income market.

If inflation continues to decline, the central bank may eventually consider easing monetary policy.

Lower interest rates could lead to several developments:

• increased demand for longer-dated bonds
• lower government borrowing costs
• improved bond market liquidity

However, if inflation pressures persist, policymakers may maintain higher interest rates, which would likely continue to support demand for short-term Treasury bills.

3. Growth of Institutional Investors

Institutional investors such as:

• pension funds
• insurance companies
• asset managers

will remain key participants in Ghana’s fixed income market.

As the country’s pension sector continues to expand, these investors are expected to play a larger role in providing long-term capital for government and corporate bonds.

Institutional investors often prefer longer-dated securities because they match their long-term liabilities.

This could eventually support greater demand for government bonds with longer maturities.

4. Development of the Corporate Bond Market

One of the major long-term goals for Ghana’s capital markets is the development of a more active corporate bond sector.

A stronger corporate bond market would offer several benefits:

• greater investment diversification
• additional funding sources for businesses
• improved capital market depth

Encouraging more companies to issue corporate bonds could reduce the current reliance on government securities.

Over time, this would create a more balanced and resilient fixed income market.

5. Digital and Market Infrastructure Improvements

Improving trading infrastructure and transparency within the GFIM could also enhance market participation.

Modernizing market systems may include:

• improved electronic trading platforms
• real-time market data access
• enhanced settlement systems

Such improvements could attract more investors and increase overall market liquidity.

Conclusion

Ghana’s secondary debt market experienced a pullback in trading activity, with GFIM volumes declining to GH¢857 million from the previous session’s higher levels.

Despite the slowdown, Treasury bills remained the dominant instruments, accounting for more than half of the market’s total trading volume.

The shift toward short-term securities reflects continued caution among investors as Ghana navigates its ongoing economic stabilization process.

While government bonds and corporate securities continue to trade in the market, investor preference for shorter-duration instruments suggests that market participants are prioritizing liquidity, flexibility, and risk management in the current financial environment.

Track GDP, Inflation and Central Bank rates for top African markets with Serrari’s comparator tool.

See today’s Treasury bonds and Money market funds movement across financial service providers in Kenya, using Serrari’s comparator tools.

Photo Source: Google

By: Elsie Njenga 

16th March,2026