Investors await for Trump-Xi Meeting

Lebanon’s BLOM Bond Index (BBI) decreased over the past 2 weeks by 1.42% to close at 85.95 points. As for the JP Morgan Emerging Markets’ Bond Index (EMBI), it also recorded a decline by 6.87% and reached 759 points.

As such, the yields on (5Y) and (10Y) Lebanese Eurobonds increased by 50 and 35 basis points (bps) to reach 11.30% and 11.15%, respectively.

In the US, the yields on the (5Y) treasuries and (10Y) treasuries witnessed fluctuations during the past 2 weeks. However, they ended the week with a decrease of 9 and 8 basis points (bps) to 2.85% and 3.03% respectively. In fact, on Thursday, yields dropped and stocks rallied after the statement of Federal Reserve Chairman Jerome Powell that interest rates were “just below neutral” which signals that the Fed could pause its interest rate hiking schedule or cut the number of planned rate increases next year.

Financial and commodities markets are closely watching the outcome of the G20 summit starting Friday in Buenos Aires in which important topics are going to be discussed in addition to the meeting between the Chinese and U.S. presidents that could determine the course of a heated trade war over the next year.

During the past 2 weeks, the 5Y and 10Y spread between the yield on the Lebanese Eurobonds and their US counterparts winded by 110 and 77 basis points (bps)  to reach 845 and 812 bps respectively.

Weekly Change of Lebanese Eurobonds Prices

  Prices Weekly Yields   Weekly
Maturity Coupon in % 29/11/2018 15/11/2018 Change 29/11/2018 15/11/2018 Change bps
28/11/2019 5.45 95.13 95.63 -0.52% 10.73% 9.99% 74
09/03/2020 6.375 94.63 95.5 -0.91% 10.98% 10.10% 88
14/04/2020 5.8 93.38 94.13 -0.80% 11.11% 10.36% 75
19/06/2020 6.15 93 93.88 -0.94% 11.17% 10.41% 76
12/04/2021 8.25 93.5 94.75 -1.32% 11.45% 10.78% 67
04/10/2022 6.1 84 85.25 -1.47% 11.34% 10.85% 49
27/01/2023 6 82.75 83.75 -1.19% 11.31% 10.92% 38
22/04/2024 6.65 81.13 82.38 -1.52% 11.43% 11.04% 38
04/11/2024 6.25 78.5 79.63 -1.42% 11.32% 10.99% 33
03/12/2024 7.00 81.38 82.63 -1.51% 11.36% 11.01% 35
26/02/2025 6.20 77.75 79.13 -1.74% 11.25% 10.87% 39
12/06/2025 6.25 77.5 79 -1.90% 11.19% 10.79% 40
28/11/2026 6.60 76.25 77.25 -1.29% 11.17% 10.92% 24
23/03/2027 6.85 76.75 78.13 -1.77% 11.22% 10.90% 32
29/11/2027 6.75 75.5 77 -1.95% 11.13% 10.80% 33
03/11/2028 6.65 74 75.5 -1.99% 11.02% 10.71% 31
26/02/2030 6.65 73 74.25 -1.68% 10.86% 10.62% 25
22/04/2031 7.00 73 74.38 -1.86% 11.05% 10.79% 26
23/03/2032 7.00 72.75 74 -1.69% 10.93% 10.70% 23
02/11/2035 7.05 72.25 73.88 -2.21% 10.61% 10.35% 27
23/03/2037 7.25 72.5 74.38 -2.53% 10.70% 10.40% 30

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