The BLOM Bond Index (BBI) concluded the week declining by an incremental 0.13%, to stand at 92.77 points as investors cashed out their gains from previous week and are awaiting the next steps that will be taken by the government in order to take their decisions. As for the JP Morgan Emerging Markets’ Bond Index (EMBI), it recorded a weekly increase by 0.01% and reached 806.65 points. As such, the yields on (5Y) and (10Y) Lebanese Eurobonds increased by 12 and 10 basis points (bps) to reach 9.54% and 9.60%, respectively. As for the Lebanese 5Y CDS they dropped weekly from 709 basis points to 696 basis points.
In the US, the 5Y and 10Y US treasuries’ yields increased from 2.46% and 2.65% last week to 2.48% and 2.66% this week, respectively. In fact, investors traded in riskier assets and equity market rose on the back of optimism around a potential deal to avert shutdown. Moreover, investors’ hopes increased in light of a US-China tariff pact with talks under way in Beijing this week. Worth mentioning that by the end of the week, the yields’ rise was negatively affected by the release of retail sales for December which fell by 1.2% marking the largest monthly decline since September 2009.
As a result, the 5Y spread and 10Y spread between the yield on the Lebanese Eurobonds and their US couterparts widen weekly by 10 and 9 basis points (bps) to reach 706 and 694 bps respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 14/02/2019 | 07/02/2019 | |
| Lebanon | 688 | 699 |
| KSA | 92 | 89 |
| Dubai | 128 | 127 |
| Brazil | 168 | 169 |
| Turkey | 315 | 312 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 14/02/2019 | 07/02/2019 | Change | 14/02/2019 | 07/02/2019 | Change bps |
| 09/03/2020 | 6.375 | 97.25 | 96.742 | 0.53% | 9.12% | 9.59% | -47 |
| 14/04/2020 | 5.8 | 96 | 95.675 | 0.34% | 9.48% | 9.73% | -25 |
| 19/06/2020 | 6.15 | 95.75 | 95.479 | 0.28% | 9.57% | 9.75% | -18 |
| 12/04/2021 | 8.25 | 96.63 | 96.538 | 0.10% | 10.01% | 10.05% | -4 |
| 04/10/2022 | 6.1 | 89.63 | 89.83 | -0.22% | 9.53% | 9.45% | 8 |
| 27/01/2023 | 6 | 88.55 | 88.936 | -0.43% | 9.54% | 9.40% | 14 |
| 22/04/2024 | 6.65 | 87.15 | 87.427 | -0.32% | 9.87% | 9.78% | 8 |
| 04/11/2024 | 6.25 | 84.63 | 85.46 | -0.97% | 9.82% | 9.60% | 22 |
| 03/12/2024 | 7.00 | 87.38 | 86.586 | 0.92% | 9.91% | 10.10% | -19 |
| 26/02/2025 | 6.20 | 84.88 | 85 | -0.14% | 9.55% | 9.52% | 4 |
| 12/06/2025 | 6.25 | 84.75 | 85.523 | -0.90% | 9.51% | 9.32% | 19 |
| 28/11/2026 | 6.60 | 84.75 | 85.259 | -0.60% | 9.40% | 9.29% | 11 |
| 23/03/2027 | 6.85 | 84.38 | 84.841 | -0.54% | 9.67% | 9.57% | 10 |
| 29/11/2027 | 6.75 | 83.38 | 83.795 | -0.50% | 9.59% | 9.50% | 8 |
| 03/11/2028 | 6.65 | 82.13 | 82.545 | -0.50% | 9.50% | 9.43% | 8 |
| 26/02/2030 | 6.65 | 80.25 | 80.438 | -0.23% | 9.59% | 9.55% | 4 |
| 22/04/2031 | 7.00 | 80.13 | 80.682 | -0.68% | 9.83% | 9.74% | 9 |
| 23/03/2032 | 7.00 | 80.13 | 80.42 | -0.36% | 9.71% | 9.66% | 5 |
| 02/11/2035 | 7.05 | 79.5 | 79.876 | -0.47% | 9.52% | 9.47% | 5 |
| 23/03/2037 | 7.25 | 79.5 | 79.591 | -0.11% | 9.67% | 9.65% | 1 |