The Lebanese Eurobonds Market Witnessed a Rise during this Week

With higher demand for both 5 year and 10 year maturities, the Lebanese Eurobonds market, reflected by the BLOM Bond Index (BBI), observed an increase of 0.47% to reach 103.45 points during this week.

Yields on the Lebanese Eurobonds maturing in 5 years and 10 years dropped from 6.24% and 6.89% to 6.21% and 6.76%, respectively.

Moreover, the JP Morgan Emerging Markets’ Bond Index, which registered a weekly gain of 0.76% to 770.68 points, outperformed the BBI.

As investors lowered their expectation of the Fed increasing interest rates any time soon, despite the latest data revealing a modestly improving labor market, US treasuries showed a progressing weekly activity.  As such, the yields on the US treasuries maturing in 5 years and 10 years fell from 1.16% and 1.57% last week to 1.12% and 1.53% this week, respectively.

The spread between the yields on the 5Y Lebanese Eurobonds witnessed an escalation from 508 bps to 509 bps, while the spread between the yields 10Y Lebanese Eurobonds and their US comparable fell from 532 bps to 523 bps.

5 Year Credit Default Swaps, Mid-Prices (in basis points)