US Treasury Yields Rise ahead of ECB Meeting

 

Lebanon’s BLOM Bond Index (BBI) dropped by 0.58% over the past week to reach 92.32 points. As for the JP Morgan Emerging Markets’ Bond Index (EMBI), it recorded a lesser weekly downtick of 0.47% and reached 769.84 points.

Yields on the 5 year (5Y) and 10Y Lebanese Eurobonds rose from last week’s 8.65% and 9.48% to 8.90% and 9.51% this week, respectively.

In the US, demand for US treasuries slumped over the past week with the yield on the US treasuries maturing in 5 years and 10 years rising from last week’s 2.68% and 2.83% to 2.77% and 2.93%, this week, respectively. U.S. government debt yields rose during the week after the European Central Bank’s chief economist said the bank is set to discuss the end of its massive bond-buying program. In fact, the threat of less accommodative monetary policy in Europe helped spur a sell-off in American debt

Meanwhile, the 5Y spread between the yield on the Lebanese Eurobonds and its US comparable widened from last week’s 597 basis points (bps) to this week’s 613 bps. Meanwhile, the 10Y spread narrowed from 665 bps to this week’s 658 bps.

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

07/06/2018 31/05/2018
Lebanon 606 596
KSA 88 89
Dubai 116 120
Brazil 254 227
Turkey 274 269

Weekly Change of Lebanese Eurobonds Prices

  Prices Weekly Yields Weekly
Maturity Coupon in % 07/06/2018 31/05/2018 Change 07/06/2018 31/05/2018 Change bps
20/05/2019 6 98.75 99.13 -0.38% 7.38% 6.94% 44
28/11/2019 5.45 97.13 97.5 -0.38% 7.54% 7.25% 29
09/03/2020 6.375 97 97.5 -0.51% 8.24% 7.91% 33
14/04/2020 5.8 95.75 96.25 -0.52% 8.32% 7.99% 32
19/06/2020 6.15 95.88 96.5 -0.64% 8.39% 8.03% 36
12/04/2021 8.25 98.63 99 -0.37% 8.80% 8.64% 15
04/10/2022 6.1 90 90.88 -0.97% 8.93% 8.66% 27
27/01/2023 6 88.75 89.63 -0.98% 9.02% 8.76% 26
22/04/2024 6.65 88.5 89.5 -1.12% 9.23% 8.98% 25
04/11/2024 6.25 85.5 86.5 -1.16% 9.30% 9.07% 24
03/12/2024 7.00 88.88 89.88 -1.11% 9.32% 9.09% 23
26/02/2025 6.20 84.5 85.5 -1.17% 9.36% 9.13% 23
12/06/2025 6.25 84.13 85.13 -1.17% 9.39% 9.16% 22
28/11/2026 6.60 83.38 84 -0.74% 9.50% 9.37% 12
23/03/2027 6.85 84.38 84.38 0.00% 9.51% 9.50% 0
29/11/2027 6.75 83 83.5 -0.60% 9.51% 9.42% 9
03/11/2028 6.65 81.38 81.75 -0.45% 9.51% 9.44% 7
26/02/2030 6.65 80.5 81 -0.62% 9.43% 9.35% 8
22/04/2031 7.00 81.88 82.25 -0.45% 9.46% 9.40% 6
23/03/2032 7.00 81.25 81.5 -0.31% 9.46% 9.42% 4
02/11/2035 7.05 79.63 80 -0.46% 9.46% 9.40% 5
23/03/2037 7.25 80.63 80.25 0.47% 9.47% 9.52% -5

Leave a Reply

Your email address will not be published. Required fields are marked *