Bond prices remain depressed, new bonds trading at significant discounts

In the previous week, the volume of bonds traded on the secondary market saw a decline, reaching GH¢401 million. This marked a decrease of 22.78 percent compared to the previous week. However, it’s worth noting that despite this dip, the aggregate volume increased by 17.3 percent week-on-week, amounting to GH¢2.27 billion.

This increase in aggregate volume was primarily attributed to a nearly 41 percent increase in T-bill trades recorded during the same week. The strong performance of T-bill trades contributed significantly to the overall market activity.

Despite the increased volume, bond prices continue to remain depressed, with new bonds trading at deep discounts across the local currency (LCY) yield curve. This observation, as reported by GCB Capital Research, underscores the current market dynamics and the pricing pressures facing bonds.

Market participants are closely monitoring these trends as they can have implications for investment strategies, particularly for those involved in bond trading and portfolio management.

The bond market’s performance and pricing will continue to be influenced by a range of factors, including changes in interest rates, inflation expectations, and overall economic conditions. As such, staying informed about these developments is essential for market participants and investors.

Source: Norvanreports