Demand Down this past week on Lebanese Eurobonds and US Treasuries

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

 

 

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