The Ghana Fixed Income Market recorded 1.91 billion cedis across 1,662 transactions on December 19, 2025, driven by strong activity in government bonds and treasury bills as institutional investors maintained appetite for sovereign debt securities. New Government of Ghana notes and bonds dominated with 1.30 billion cedis traded through 85 separate deals, while corporate bonds contributed 354.83 million cedis through eight transactions.
Treasury bills accounted for 260.21 million cedis across 1,562 deals, demonstrating continued demand for shorter term government securities despite yields at historic lows. Sell and buyback trades involving government securities contributed 597,501 cedis through three transactions. Old Government of Ghana notes and bonds registered minimal activity with 313,100 cedis traded in four deals. The session follows consistent patterns observed throughout December where volumes fluctuate between 900 million and 2.74 billion cedis depending on government funding requirements and institutional positioning.
The largest volume traded involved a government bond maturing February 12, 2030, carrying an 8.80 percent coupon and security code A6146. This instrument traded 550 million cedis across 11 transactions at a yield of 15.31 percent and closing price of 80.43 cedis per 100 cedis face value. The security has emerged as the most actively traded bond throughout December, consistently attracting investor interest as market participants position portfolios heading into year end.
Corporate bond activity focused heavily on Consolidated Bank Ghana securities. The most substantial corporate transaction involved a CMB bond maturing August 30, 2027, carrying a 13.00 percent coupon, which recorded 354.79 million cedis through seven transactions at a closing price of 91.03 cedis. This represents one of the highest corporate bond volumes recorded in December 2025, though non sovereign instruments still account for less than 20 percent of total daily trading.
Treasury bill activity centered on a security maturing July 27, 2026, which traded 45.39 million cedis through 10 separate transactions at a closing price of 93.40 cedis. Current treasury bill rates around 10.7 percent represent their lowest levels in 14 years, reflecting Ghana’s improved macroeconomic conditions and declining inflation environment. The steep decline in money market rates has prompted institutional investors to reallocate funds from short term government securities into longer dated bonds seeking enhanced returns.
The largest sell and buyback transaction involved a government bond maturing August 17, 2027, carrying a 10.00 percent coupon and security code A6139. This security traded 509,101 cedis in one transaction at a yield of 12.26 percent and closing price of 96.65 cedis. These repurchase agreements allow financial institutions to maintain short term liquidity while holding government securities, serving as crucial portfolio management tools during periods of active year end positioning.
Old government bond trading included a security maturing July 13, 2026, carrying a 19.50 percent coupon and security code A5373. This instrument traded 203,100 cedis across two transactions at a yield of 27.69 percent and closing price of 90.98 cedis. The high coupon rate reflects issuance during Ghana’s previous high inflation environment before recent economic stabilization brought rates down dramatically across the yield curve.
The Ghana Fixed Income Market is celebrating its tenth anniversary during November and December 2025 under the theme Ten Years of the Ghana Fixed Income Market, Deepening Markets, Expanding Possibilities. Since inception in August 2015, the platform has traded over one trillion cedis in securities, establishing itself as one of Sub Saharan Africa’s most liquid bond markets outside South Africa and Nigeria. Managing Director of the Ghana Stock Exchange Abena Amoah revealed that cumulative trading volume from January to October 2025 crossed the 200 billion cedi threshold.
The market has experienced substantial growth from humble beginnings when 5.2 billion cedis in securities were traded between August and December 2015. Daily volumes now frequently exceed half a billion cedis with occasional sessions surpassing two billion cedis. The transformation reflects development of Ghana’s debt capital markets from predominantly bilateral trading arrangements to a transparent electronically mediated marketplace comparable to larger African markets.
Government securities including treasury bills, notes and bonds are automatically admitted to trade on the platform upon issuance. Corporate bonds, Bank of Ghana money market instruments and other debt securities may be listed subject to admission requirements. All transactions settle through Bank of Ghana’s Central Securities Depositary on a T plus 3 basis, ensuring efficient clearing and settlement processes that support market confidence.
Inflation declined from 23.8 percent in December 2024 to 6.3 percent in November 2025, reaching its lowest level since 2021 and falling below the Bank of Ghana’s target range. The cedi has appreciated roughly 35 percent against major currencies this year, supported by higher cocoa and gold export earnings and improved investor confidence. The Bank of Ghana has responded to improved economic conditions by cutting its benchmark policy rate from 21.5 percent to 18 percent, marking the first monetary policy loosening after an extended tightening cycle.
Lower interest rates have supported economic activity while maintaining price stability as inflation continues moderating toward mid single digit levels. Government bonds currently trade at yields ranging from roughly 12 to 16 percent across different maturities, offering attractive real returns as inflation stabilizes. The yield environment reveals market expectations about inflation trajectory and monetary policy direction heading into 2026.
The fixed income market suffered significant turbulence in 2023 when the government implemented debt restructuring under the Domestic Debt Exchange Programme as part of its International Monetary Fund supported economic program. The restructuring imposed losses on bondholders, causing trading volumes to collapse by more than half from the 230 billion cedi peak recorded in 2022 to just 98 billion cedis in 2023. The market recovered by 76 percent in 2024 to reach 174 billion cedis.
Bank of Ghana Governor Johnson Asiama announced turnover reached approximately 214 billion cedis through October 2025, reflecting resurgence of investor confidence. The recovery from 98 billion cedis in 2023 to current levels demonstrates market stability following the Domestic Debt Exchange Programme impact on trading volumes and investor sentiment. The sustained rebound validates the government’s economic management approach and restoration of market confidence.
Pension fund assets on the Ghana Fixed Income Market have grown to over 90 billion cedis, comprising approximately 90 percent of assets under management. This concentration reflects the conservative investment approach of pension fund managers who prioritize fixed income securities for their stable returns and lower volatility compared to equities. The heavy pension fund participation provides consistent demand supporting liquidity across government securities.
Corporate bond participation remains a key challenge for market development. Only eight active corporate issuers currently participate in the Ghana Fixed Income Market after four companies recently exited, down from a previous pool of twelve. The limited depth in corporate debt reflects various factors including company preferences for bank financing, regulatory requirements for bond issuances and investor concentration in government securities perceived as lower risk.
Looking ahead, market participants expect continued growth in fixed income trading as Ghana sustains its economic recovery. Improved fiscal discipline, declining inflation and exchange rate stability have bolstered investor confidence in government securities. The challenge remains expanding corporate bond issuance to diversify funding sources for businesses and provide investors with alternatives to sovereign debt.
The government plans to raise about 71 billion cedis from the domestic market in 2026, one of the largest domestic financing programs in years. A large borrowing requirement normally puts pressure on interest rates, especially treasury bill rates. However, lower inflation and improved macroeconomic fundamentals may allow the government to refinance existing debt at lower costs while meeting new funding requirements without dramatically pushing up yields.
Ghana will not issue Eurobonds in 2026 according to budget documents, marking a departure from historical patterns. The country issued Eurobonds almost every year between 2013 and 2021, raising more than 15 billion dollars over that period. The pause in Eurobond borrowing reduces external debt pressures and supports cedi stability, a key factor behind improving investor sentiment.
Treasury bills maintained steady participation throughout December despite lower volumes compared to earlier sessions. The largest treasury bill transaction on December 19 represented approximately 17 percent of total treasury bill trading for the day. Banks, which represent the largest market participants, typically favor matching short term deposit liabilities with short term assets like treasury bills rather than committing to longer duration exposures.
This preference persists even as economic conditions stabilize and the yield curve offers higher compensation for duration risk in longer dated bonds. Financial institutions manage asset liability mismatches carefully to avoid exposing themselves to interest rate risk or liquidity pressures. The continued treasury bill preference demonstrates structural features of Ghana’s financial system that shape trading patterns.
Sell and buyback transactions, functioning as collateralized short term liquidity arrangements, remain an important component of market activity. These repo transactions provide investors with flexible tools to manage liquidity while maintaining exposure to government bond positions. Financial institutions use repos to access short term funding secured by their government securities holdings, supporting smooth functioning of money markets.
The December 19 session demonstrates the Ghana Fixed Income Market’s maturation into a reliable platform supporting government financing needs, institutional investment management and price discovery across the yield curve. Daily trading regularly exceeds one billion cedis, providing liquidity depth comparable to frontier markets globally. The platform’s electronic trading infrastructure ensures transparency with live executable prices visible to all market participants.
Ghana Stock Exchange officials have encouraged more companies to list bonds on the platform to strengthen capital markets infrastructure. Exchange Managing Director Abena Amoah stated that the GSE aims to admit 100 companies to the Ghana Fixed Income Market and empower 10 million Ghanaians to participate in capital markets, up from the current two million securities account holders. The exchange plans launching an academy providing preparatory programs designed to demystify capital markets for companies and their boards.
Expanding the corporate bond market remains a priority for the next decade alongside introducing sustainable finance instruments including green and social bonds. Regional integration under the African Continental Free Trade Area framework could expand the market’s reach beyond Ghana’s borders. Leveraging financial technology and blockchain to boost transparency and efficiency represents another development avenue being explored by market operators.
The yield differential between government bonds and treasury bills reflects term premium compensation for duration risk. Investors accepting longer maturity exposures demand higher yields to compensate for interest rate risk and reduced liquidity. The current spread of approximately four to five percentage points between treasury bill rates at 10.7 percent and government bond yields around 15 percent appears consistent with historical patterns adjusted for the improved inflation outlook.
December typically brings increased portfolio adjustment activity as institutional investors rebalance allocations and prepare annual financial statements. Some analysts anticipate continued positive momentum if corporate earnings maintain their trajectory and macroeconomic stability persists through the first quarter of 2026. However, a large government domestic borrowing program could pressure yields higher if execution concentrates issuance in shorter timeframes.
Foreign institutional investors have returned to Ghana’s fixed income market after withdrawing during the debt crisis period. Portfolio inflows accelerated in the second half of 2025 as global fund managers increased emerging market allocations following US Federal Reserve interest rate cuts. Ghana’s frontier market status and improved sovereign credit profile make it attractive for investors seeking higher yields than developed markets while accepting measured credit and currency risks.
The sustained stability of Ghana’s economy, fiscal discipline and investor sentiment will likely determine whether the market maintains momentum or experiences profit taking corrections. Valuation metrics including yield spreads and credit default swap prices suggest selective opportunities remain despite the strong recovery rally. Investors are advised to conduct thorough due diligence and maintain diversified portfolios balancing return potential with risk management considerations.