The BLOM Bond Index (BBI) registered a 0.22% weekly uptick to reach 101.82 points. Likewise, the JP Morgan Emerging Markets’ Bond Index gained a weekly 0.79% to reach 735.53 points.
Demand for Lebanese Eurobonds maturing in 5 years and 10 years rose over the past week as their yields fell from 6.75% and 7.20% to reach 6.68% and 7.16% this week.
US treasuries gained some respite after six-weeks of selloffs with the yields on the benchmark notes maturing in 5 years and 10 years decreasing from last week’s 2.1% and 2.6% to 2.04% and 2.5% this week, respectively. Demand for safe-haven assets rose after the violent attack in Berlin and the killing of a Russian envoy in Turkey.
As for the spread between the yields on the 5 Year Lebanese Eurobonds and their US comparable, it decreased by a weekly 0.22% to 464 bps while the 10 Year spread widened by 0.22% to 461 bps.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 22/12/2016 | 15/12/2016 | |
| Lebanon | 517 | 541 |
| KSA | 113 | 119 |
| Dubai | 148 | 143 |
| Brazil | 283 | 295 |
| Turkey | 274 | 287 |