Secondary market activity weakened significantly over the past week, with total turnover dropping by 59.88% week-on-week to GH¢377.59 million.

The decline follows the government’s announcement of its return to the primary market to raise long-term funds, prompting investors to adopt a cautious stance.

Trading was largely concentrated in the short-to-medium term segment of the yield curve. Bonds maturing between 2027 and 2030 dominated activity, accounting for 88.98% of total traded volumes at a weighted average yield of 10.73%.

The 2031–2034 segment recorded the next highest activity, contributing 11.02% of total turnover at a weighted average yield of 12.22%.

Meanwhile, the longer-dated 2035–2038 maturities saw no trading activity during the period.

According to Databank Research, secondary market activity is expected to remain subdued in the near term, as investors hold back ahead of the anticipated issuance of a 7-year bond due in 2033 and the release of pricing guidance.

The firm noted that, in the interim, trading is likely to remain selective, with only limited support from month-end portfolio rebalancing. A significant rebound in market activity, it added, will depend on clearer yield signals from the upcoming bond issuance.