Subdued Activity on the Lebanese Eurobonds Market This Week

The activity on the Lebanese Eurobonds market was subdued over the past week as the BLOM Bond Index (BBI) rose by a minor 0.002% to 102.65 points. The Lebanese gauge was able to outperform the JP Morgan Emerging Markets’ Bond Index which dropped by a weekly 0.8% to 663.72 points.

The yield on the 5 Year Lebanese Eurobonds steadied at 6.50% while the yield on the Lebanese Eurobonds maturing in 10 Years slid by 1 basis point (bp) to 6.93%.

In light of increased global economic risks, safe-haven assets gained appeal over the past week. Higher demand was registered for medium and long term US Treasuries as the yields on the 5Y and 10Y US Treasuries slid by 14 bps and 24 bps to 1.11% and 1.63%, respectively.

Accordingly, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 525 bps and 507 bps to 539 bps and 530 bps, respectively.

5 Year Credit Default Swaps, Mid-Prices