Demand for the Lebanese Eurobonds increased over the week, as reflected by the BLOM Bond Index (BBI) which added 0.30% to reach 104.18 points.
The positive performance of the Lebanese gauge was matched by a bigger improvement in the JP Morgan Emerging Markets’ Bond Index which increased by a weekly 0.82% to 721.54 points.
The BBI was boosted by higher demand for medium and long term maturities with the yields on the Lebanese Eurobonds maturing in 5 Years and 10 Years going from 6.11% and 6.73% to 6% and 6.68%, respectively.
US treasuries saw mixed demand during the week, with the 5Y yield for US treasuries going up from 1.20% to 1.24%, and the 10Y decreasing from 1.76% to 1.75%.
Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable narrowed from 491 bps and 497 bps to 476 bps and 493 bps, respectively.