Trading activity in the Ghanaian secondary bond market gained some momentum, as aggregate volume traded surged last week to ¢331.54 million.
Investor interest in the new bonds was slightly above the old bonds, as the 4-year (coupon: 8.5%) and 14-year (coupon: 9.85%) papers jointly accounted for 51% of the market turnover.
The new bonds trading close to par value.
This week, Bloomberg presented a potential solution to the payment-in-kind valuation issue, which could enhance trading activity on the local bond market.
Ghana is hoping to secure a $1 billion loan from the World Bank which would be made available after concluding an IMF board level agreement.
This will help government to reduce its short-term borrowing, leading to decline in treasure yields.