BoG reveals substantial increments in yields of DDEP bonds for Q3 2023

In its Quarterly Economic Bulletin for Q3 2023, the Bank of Ghana provides insights into the performance of the Domestic Debt Exchange Programme (DDEP) bonds, shedding light on the evolving yields and the overall market dynamics.

The report discloses substantial increases in secondary market yields across various tenors in the DDEP.

Noteworthy adjustments include a 415 basis points surge for the 4-year bond, reaching 16.13 percent. Similarly, the 5-year, 6-year, and 7-year bonds experienced increases of 1,434bps, 963bps, and 865bps, respectively, settling at 26.52 percent, 25.03 percent, and 23.94 percent by the close of Q3 2023.

The extended tenors of the DDEP also witnessed significant changes, with the 8-year, 9-year, 10-year, and 11-year bonds registering increases of 1,248bps, 804bps, 756bps, and 769bps, culminating in yields of 23.32 percent, 22.94 percent, 22.70 percent, and 22.53 percent, respectively.

Meanwhile, the 12-year, 13-year, 14-year, and 15-year DDEP bonds experienced jumps of 1,122bps, 775bps, 744bps, and 755bps, settling at 22.43 percent, 22.42 percent, 22.39 percent, and 22.44 percent.

The bulletin also disclosed comprehensive figures for the Ghana Fixed Income Market (GFIM).

As of end-September 2023, the total value of Government of Ghana Notes and Bonds listed on the GFIM reached GH¢216,335 million. This marks a substantial increase from the GH¢134,094 million recorded in the same period in 2022.

Corporate bonds, however, witnessed a decrease, standing at GH¢8,468 million compared to GH¢12,340 million in September 2022.

The report highlights the robust activity on the GFIM, with a cumulative volume of trades reaching 296,650, valued at GH¢59,217 million. This figure spans from the beginning of the year through the end of September 2023, indicating a vibrant and liquid market.

The Bank of Ghana’s Quarterly Economic Bulletin underscores the dynamic nature of Ghana’s domestic debt market, with notable shifts in yields and substantial growth in the value of government securities listed on the GFIM.