The secondary bond market activity improved in the first half of 2024 compared to the same period last year, but is still below pre-Domestic Debt Exchange Programme levels.
Investors are still focusing more on the money market.
According to trading results, market activity improved for Government of Ghana securities, partly due to growing participation from some offshore investors.
Additionally, significant improvement and transparency in sell-buyback trades partly benefited secondary market activity.
Overall, the market recorded turnover was worth GH¢19.18 billon.
Meanwhile, the completion of external debt rework could be beneficial to the Ghanaian secondary bond market.
Ghana’s debt restructuring primarily followed an International Monetary Fund conditionality as the country showed unsustainable debt levels while seeking a US$3 bilion bailout from the Fund.
“We believe a successful restructuring of the external debts will give the government additional fiscal space to prioritise growth while committing to other areas of the IMF programme. Additionally, a successful restructuring of external debts in addition to the already concluded DDEP may likely reset investor sentiments around GoG papers, as debt sustainability is kept in check”, Databank Research said.
It believes these sentiments may likely augur well for trading activity in the secondary bond market amid declining T-bill yields.
