Demand for Lebanese Eurobonds Down over the Past Week

The BLOM Bond Index (BBI) declined 0.87% over the week to reach 100.01 points. Similarly, the JP Morgan Emerging Markets’ Bond Index lost a weekly 0.58% to reach 728.14 points. 

Hence, the yields of the Lebanese Eurobonds maturing in 5Y and 10Y grew from 6.74% and 7.32% to 6.90% and 7.46%, respectively.

In the U.S, demand for safe-haven US treasuries maturing in 5 and 10 years also fell over the past week from 1.73% and 2.29% to 1.83% and 2.36%, respectively. Investors are still betting that policies of new US President Donald Trump will boost the country’s economy.

As for the spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable, they broadened from 501 bps and 503 bps last week to 507 bps and 510 bps this week, respectively.

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