Trading activity in Ghana's domestic bond market has contracted sharply, with weekly turnover falling by 71% to GH¢1.56bn.
The steep decline in volume points to a significant drying up of liquidity in the local fixed-income market, as both primary and secondary market participants appear to be stepping back from new positions.
75%, reflecting the persistent cost of borrowing for the government in this tenor.
The 2027-2030 maturity segment remained the most active portion of the market, accounting for 46.26% of all trades executed during the period.
These medium-term instruments traded at a weighted-average yield of 11.75%, reflecting the persistent cost of borrowing for the government in this tenor.
Despite the high yields, the lack of volume suggests that investors are cautious about adding to their holdings, possibly due to broader macroeconomic uncertainties or limited capital inflows.
This liquidity squeeze comes at a time when global safe-haven assets are undergoing a stress test, with traditional protective lusters fading for some instruments.