Drop in Demand for Both Lebanese Eurobonds and US Treasuries This Week

06/10/201629/09/2016 ChangeYear to Date
BLOM Bond Index (BBI)*103.21103.31-0.10%-0.86%
Weighted Yield**6.40%6.36%0.63%4%
Weighted Spread***539550-2.00%25%

 

29/09/201629/09/2016Weekly Change
BBI103.21103.31-0.10%
JP Morgan EMBI770.52771.70-0.15%
5Y LEB6.22%6.15%
10Y LEB6.81%6.81%
5Y US1.281.12
10Y US1.751.56
5Y SPREAD494503
10Y SPREAD506525

 

The Lebanese Eurobonds Market witnessed a drop in demand this week, as depicted by the BLOM Bond Index (BBI), that lost 0.10% to 103.31 points. Similarly, the JP Morgan Emerging Markets’ Bond Index fell 0.15% this week to to 770.52 points, hence lagging behind the BBI.

Demand for Lebanese Eurobonds maturing in 5Y and 10Y decreased over the week. The yield of Lebanese Eurobonds maturing in 5Y rose from 6.15% to 6.22%, while the yields on the Eurobonds maturing in 10 years remained stable at 6.81%.

In the US, as investors are expecting better than forecasted payrolls for September and awaiting a speech next week by Fed Chair Janet Yellen that may signal a rate hike. Demand for treasuries dropped thus triggering 4-month high yields.  Yields on the US treasuries maturing in 5Y and 10Y rose from 1.12% and 1.56%, to 1.28% and 1.75%, respectively, this week.

The spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable narrowed over the past week from 503 bps and 525 bps to 494 bps and 506 bps, respectively.

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

06/10/201629/09/2016
Lebanon485485
KSA156164
Dubai156165
Brazil272275
Turkey249266

 

 PricesWeeklyYieldsWeekly
Maturity DateCoupon in %06/10/201629/09/2016Change 06/10/201629/09/2016Change bps
12/10/2017599.2599.38-0.13%5.77%5.62%15
12/06/20185.1599990.00%5.78%5.77%1
12/11/20185.1598.7598.750.00%5.79%5.78%1
23/04/20195.599.1399.130.00%5.87%5.87%0
20/05/2019699.5100.25-0.75%6.21%5.89%31
28/11/20195.4598.6398.630.00%5.93%5.93%0
09/03/20206.375100.88101.13-0.25%6.08%6.01%8
14/04/20205.899.1399.35-0.22%6.08%6.01%7
19/06/20206.15100.13100.38-0.25%6.11%6.03%8
12/04/20218.25108108.38-0.35%6.19%6.11%9
04/10/20226.198.6398.75-0.12%6.38%6.35%3
27/01/2023697.7598-0.26%6.44%6.39%5
04/11/20246.2597.1397.25-0.12%6.72%6.69%2
22/04/20246.6599.7599.750.00%6.69%6.69%0
03/12/20247.00101.75101.9-0.15%6.72%6.69%2
26/02/20256.2096.6396.630.00%6.73%6.73%0
12/06/20256.2596.6396.630.00%6.77%6.77%0
28/11/20266.6098.3898.380.00%6.82%6.82%0
29/11/20276.7599990.00%6.88%6.88%0
03/11/20286.6597.7597.750.00%6.93%6.93%0
26/02/20306.6597.25970.26%6.97%7.00%-3
22/04/20317.0099.6399.380.25%7.04%7.07%-3
02/11/20357.0599.25990.25%7.12%7.15%-2

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