US Yields higher with Easing Sentiment on US-China Trade War

Lebanon’s BLOM Bond Index (BBI) decreased  by 1.14% over the last week to reach 84.94 points while the JP Morgan Emerging Markets’ Bond Index (EMBI) recorded a 0.50% weekly uptick to stand at 772.09 points. As such, the yields on the (5Y) and (10Y) Lebanese Eurobonds increased by 45 and 10 basis points (bps) to reach 11.35%  and 11.18% respectively ,this week.

In the US, during the past week, yields on the 5Y and 10Y treasuries witnessed an important weekly increase of 9 bps and 10 bps and ended the week at 2.96% and 3.07% respectively. The yield on the 10Y US treasuries was the highest since May 23 .In fact, this comes after new U.S. and Chinese tariffs on the countries traded goods were set at lower rates this week than previously expected, raising hopes that tensions between the world’s two largest economies may be easing.

During the week, the 5Y and 10Y spread between the yield on the Lebanese Eurobonds and their US counterparts widened by 90 and 34 basis points (bps)  to reach 839 and 811 bps respectively.

 

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

20/09/2018 13/09/2018
Lebanon 714 751
KSA 77 80
Dubai 114 118
Brazil 276 285
Turkey 401 459

Weekly Change of Lebanese Eurobonds Prices

Maturity Coupon in % 20/09/2018 13/09/2018 Change 20/09/2018 13/09/2018 Change bps
28/11/2019 5.45 92.88 94.13 -1.33% 12.02% 10.74% 128
09/03/2020 6.375 92.13 94 -1.99% 12.38% 10.85% 154
14/04/2020 5.8 90.85 92.75 -2.05% 12.39% 10.89% 149
19/06/2020 6.15 90.38 92.5 -2.29% 12.42% 10.92% 150
12/04/2021 8.25 92.25 94 -1.86% 11.84% 10.98% 86
04/10/2022 6.1 83.38 84.5 -1.33% 11.34% 10.93% 41
27/01/2023 6 82.00 83.13 -1.36% 11.35% 10.95% 39
22/04/2024 6.65 81.00 82.25 -1.52% 11.33% 10.97% 36
04/11/2024 6.25 78.25 79.25 -1.26% 11.26% 10.98% 28
03/12/2024 7.00 81.25 82.25 -1.22% 11.28% 11.01% 27
26/02/2025 6.20 77.00 78 -1.28% 11.33% 11.06% 27
12/06/2025 6.25 76.75 77.5 -0.97% 11.27% 11.07% 20
28/11/2026 6.60 75.50 76.13 -0.83% 11.25% 11.10% 15
23/03/2027 6.85 76.25 76.88 -0.82% 11.26% 11.11% 15
29/11/2027 6.75 75.00 75.5 -0.66% 11.16% 11.05% 11
03/11/2028 6.65 73.25 73.5 -0.34% 11.12% 11.06% 6
26/02/2030 6.65 72.13 72.25 -0.17% 10.99% 10.96% 3
22/04/2031 7.00 72.75 73.25 -0.68% 11.06% 10.96% 10
23/03/2032 7.00 72.63 73 -0.51% 10.92% 10.85% 7
02/11/2035 7.05 72.50 72 0.69% 10.55% 10.63% -8
23/03/2037 7.25 72.50 72.25 0.35% 10.69% 10.73% -4

 

 

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