Ghana fixed-income investors shift capital from Treasury bills to DDEP bonds

Investors in Ghana’s fixed-income market are shifting capital from short-dated Treasury bills into restructured Domestic Debt Exchange Programme (DDEP) bonds. While total market turnover saw a slight weekly decline of 1.72 per cent to GH¢6.82bn, the composition of trading changed significantly.

Trading in Treasury bills fell by nearly GH¢1.19bn, whereas activity in DDEP bonds rose by approximately GH¢1.21bn, representing a 77.13 per cent increase in turnover to GH¢2.76bn. DDEP bonds accounted for 40.5 per cent of all market activity, up from 22.4 per cent the previous week.

Most bond trading was concentrated in securities maturing between 2027 and 2030, which made up 70.08 per cent of turnover with an average yield of 12.37 per cent. The 2031–2034 maturity segment contributed 25.83 per cent of turnover at an average yield of 14.09 per cent.

Analysts suggest this movement may indicate a duration trade as investors seek longer-term returns. However, Databank Research expects market activity to remain cautious as investors await upcoming inflation data to determine the future direction of Treasury yields.