The BLOM Bond Index (BBI) ended the week at 102.56 points, down by a weekly 0.50%. As such, the BBI outweighed the JP Morgan Emerging Markets’ Bond Index (EMBI) which retreated by a weekly 0.87% to end the week at 798.79 points.
The demand on 5 year (5Y) and 10Y Eurobonds fell over the week as their respective yields rose from 6.05% and 6.96% to 6.23% and 7.08%.
Demand was also down on the 5Y and 10Y US treasuries as their yields increased from 2.52% and 2.72% last week to 2.57% and 2.84% this week, respectively.
Accordingly, the 5Y spread between the yield on the Lebanese Eurobonds and its US comparable widened from 353 basis points (bps) last week to 366 bps this week. Meanwhile, the 10Y spread steadied at 424 bps.
Higher yields on US treasuries were the result of a soft auction of new ten-year notes and the US Senate’s budget deal which raises the spending limit by $300 billion, therefore beating market expectations.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 07/02/2018 | 01/02/2018 | |
| Lebanon | 425 | 420 |
| KSA | 78 | 77 |
| Dubai | 105 | 109 |
| Brazil | 151 | 145 |
| Turkey | 169 | 165 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 07/02/2018 | 01/02/2018 | Change | 07/02/2018 | 01/02/2018 | Change bps |
| 23/04/2019 | 5.5 | 100 | 100 | 0.00% | 5.49% | 5.49% | 0 |
| 20/05/2019 | 6 | 100.6 | 100.6 | 0.00% | 5.50% | 5.51% | -1 |
| 28/11/2019 | 5.45 | 99.63 | 99.63 | 0.00% | 5.66% | 5.66% | 0 |
| 09/03/2020 | 6.375 | 101 | 101 | 0.00% | 5.86% | 5.86% | 0 |
| 14/04/2020 | 5.8 | 99.75 | 99.75 | 0.00% | 5.92% | 5.92% | 0 |
| 19/06/2020 | 6.15 | 100.38 | 100.5 | -0.12% | 5.97% | 5.92% | 5 |
| 12/04/2021 | 8.25 | 106.13 | 106.5 | -0.35% | 6.10% | 5.98% | 11 |
| 04/10/2022 | 6.1 | 99.13 | 99.88 | -0.75% | 6.32% | 6.13% | 19 |
| 27/01/2023 | 6 | 98.5 | 99.13 | -0.64% | 6.36% | 6.21% | 15 |
| 22/04/2024 | 6.65 | 99.5 | 100.13 | -0.63% | 6.75% | 6.62% | 13 |
| 04/11/2024 | 6.25 | 97.25 | 97.75 | -0.51% | 6.76% | 6.67% | 10 |
| 03/12/2024 | 7.00 | 101.13 | 101.5 | -0.36% | 6.79% | 6.72% | 7 |
| 26/02/2025 | 6.20 | 96.75 | 97 | -0.26% | 6.79% | 6.74% | 5 |
| 12/06/2025 | 6.25 | 96.63 | 97 | -0.38% | 6.84% | 6.77% | 7 |
| 28/11/2026 | 6.60 | 97.75 | 98.25 | -0.51% | 6.94% | 6.87% | 8 |
| 23/03/2027 | 6.85 | 98.38 | 98.88 | -0.51% | 7.09% | 7.02% | 8 |
| 29/11/2027 | 6.75 | 97.25 | 97.88 | -0.64% | 7.14% | 7.05% | 9 |
| 03/11/2028 | 6.65 | 94.63 | 95.75 | -1.17% | 7.38% | 7.22% | 16 |
| 26/02/2030 | 6.65 | 93.5 | 94.5 | -1.06% | 7.48% | 7.34% | 13 |
| 22/04/2031 | 7.00 | 95.5 | 96.63 | -1.17% | 7.54% | 7.40% | 14 |
| 23/03/2032 | 7.00 | 94.63 | 95.75 | -1.17% | 7.63% | 7.49% | 14 |
| 02/11/2035 | 7.05 | 94.25 | 95.38 | -1.18% | 7.65% | 7.52% | 12 |
| 23/03/2037 | 7.25 | 95.63 | 96.38 | -0.78% | 7.69% | 7.61% | 8 |