Demand for US Treasuries Up on Potential Issuance of Ultra- Long Bonds

The BLOM Bond Index (BBI) increased by a weekly 0.25% to reach 104.98 points and was outpaced by the JP Morgan Emerging Markets’ Bond Index which rose by a weekly 0.74% to 764.12 points.

Demand for Lebanese Eurobonds maturing in 5 years and 10 years grew this past week with the yields on these respective maturities falling from 5.90% and 6.73% last week to 5.80% and 6.69% this week.

Demand for US treasuries maturing in 5 years and 10 years was also more pronounced over the past week with their yields dropping from 1.95% and 2.45% last week to 1.87% and 2.38%, respectively. The US government bond market was boosted by the treasury secretary‘s announcement of a potential issuance of 50 and 100 years bonds.

The 5 year spread between the Lebanese Eurobonds’ yields and the US treasuries narrowed by 2 basis points (bps) to 393 bps while the 10 year spread widened by 3 bps to 431 points.

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

23/02/2017 16/02/2017
Lebanon 426 435
KSA 98 102
Dubai 117 123
Brazil 220 228
Turkey 236 237

 

 

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