Lebanese Eurobonds’ Market saw increased demandfor short-term maturities over the week, pushing the BLOM Bond Index (BBI) up 0.18% over the week to 103.78 points.
Hence, the Lebanese gauge was able to outperform the JP Morgan Emerging Markets’ Bond Index, which shed 0.40% to 715.56 points.
On the other hand, demand for medium- and long-term maturities decreased. Thus, the yield on the 5Y Lebanese Eurobonds added 1 basis point (bp) to 6.13%, while that of the 10Y steadied at 6.79%.
In the US, demand for US treasuries improved during the week, after the Federal Reserve of the United States left interest rates unchanged and implied there is no rush for the increase. Hence, the5Y and 10Y yields in the US decreased from 1.35% and 1.88% last week to 1.33% and 1.87%, respectively.
Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable broadened by 3 bps and 1 bp to end the week at 480 bps and 492 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 27/04/2016 | 21/04/2016 | |
| Lebanon | 450 | 453 |
| KSA | 154 | 143 |
| Dubai | 215 | 207 |
| Brazil | 338 | 351 |
| Turkey | 240 | 236 |