Activity on the Lebanese Eurobonds market was sluggish over the week, with the BLOM Bond Index (BBI) dropping slightly by 0.01% to 105.71 points. On the other hand, the JP Morgan Emerging Markets’ Bond Index outperformed the BBI rising by 0.22% to settle at 668.71 points. The yield on the Lebanese Eurobonds maturing in 5Y added 3 basis points to 5.63%, while that of the 10Y dropped 7 bps to 6.39%.
In the US, the slight increase in yields on treasuries at the beginning of the week was eventually erased, where the 5Y and 10Y yields steadied at last week’s levels of 1.49% and 2.18%, respectively. Consequently, the spread between the yields on the 5Y Lebanese Eurobonds and their US comparable broadened from 411 bps to 414 bps, while the 10Y spread narrowed from 428 bps to 421 bps.
Lebanon’s 5Y Credit Default Swaps (CDS) narrowed from last week’s 384-415 bps to 383-408 bps, this week. The 5Y CDS quotes of Saudi Arabia and that of Dubai widened from 45-55 bps and 175-185 bps to 80-90 bps and 190-203 bps, respectively. Similarly, the 5Y CDS of Turkey and that of Brazil broadened from 258-262 bps and 338-343 bps to 272-275 bps and 372-377 bps, respectively.