Over the past week, the BLOM Bond Index (BBI) rose by 0.49%, to end the week at 103.94 points. The JP Morgan Emerging Markets’ Bond Index (EMBI) registered a close performance, increasing by a weekly 0.47% to 805.42 points.
The BBI was boosted by higher demand for Lebanese Eurobonds maturing in 5 and 10 years as their respective yields slid from last week’s 6.20% and 7.02% to this week’s 6.05% and 6.92%.
Demand for US treasuries was down this week as Federal Reserve officials pointed to the high likelihood of a rate hike in December and as the US stock market recorded a strong performance.
The lower demand for safe haven assets was shown by the rise in yields on the US Treasuries maturing in 5 and 10 Years from last week’s 1.89% and 2.31% to this week’s 1.94% and 2.35%.
The 5Y and 10Y spreads between the Lebanese Eurobonds and their US comparable fell from last week’s 431 bps and 471 bps to 411 bps and 457 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 05/10/2017 | 28/09/2017 | |
| Lebanon | 452 | 450 |
| KSA | 82 | 86 |
| Dubai | 144 | 148 |
| Brazil | 185 | 200 |
| Turkey | 175 | 188 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 05/10/2017 | 28/09/2017 | Change | 05/10/2017 | 28/09/2017 | Change bps |
| 12/11/2018 | 5.15 | 100.25 | 100.25 | 0.00% | 4.91% | 4.91% | 0 |
| 23/04/2019 | 5.5 | 100.65 | 100.38 | 0.27% | 5.06% | 5.24% | -19 |
| 20/05/2019 | 6 | 101.38 | 101.25 | 0.13% | 5.10% | 5.19% | -9 |
| 28/11/2019 | 5.45 | 100.38 | 100 | 0.38% | 5.26% | 5.45% | -19 |
| 09/03/2020 | 6.375 | 102.25 | 101.63 | 0.61% | 5.37% | 5.65% | -28 |
| 14/04/2020 | 5.8 | 100.5 | 100 | 0.50% | 5.58% | 5.80% | -21 |
| 19/06/2020 | 6.15 | 101.25 | 100.75 | 0.50% | 5.64% | 5.84% | -20 |
| 12/04/2021 | 8.25 | 107.88 | 107.38 | 0.47% | 5.74% | 5.91% | -16 |
| 04/10/2022 | 6.1 | 100.13 | 99.5 | 0.63% | 6.07% | 6.22% | -15 |
| 27/01/2023 | 6 | 98.75 | 98.13 | 0.63% | 6.28% | 6.42% | -14 |
| 22/04/2024 | 6.65 | 100.25 | 99.63 | 0.62% | 6.60% | 6.72% | -12 |
| 04/11/2024 | 6.25 | 98.13 | 97.38 | 0.77% | 6.58% | 6.72% | -14 |
| 03/12/2024 | 7.00 | 102 | 101.5 | 0.49% | 6.64% | 6.73% | -9 |
| 26/02/2025 | 6.20 | 97.38 | 96.88 | 0.52% | 6.65% | 6.74% | -9 |
| 12/06/2025 | 6.25 | 97.38 | 96.88 | 0.52% | 6.69% | 6.77% | -8 |
| 28/11/2026 | 6.60 | 98.38 | 97.88 | 0.51% | 6.84% | 6.91% | -7 |
| 23/03/2027 | 6.85 | 99.75 | 99 | 0.76% | 6.89% | 7.00% | -11 |
| 29/11/2027 | 6.75 | 98.75 | 98 | 0.77% | 6.92% | 7.03% | -10 |
| 03/11/2028 | 6.65 | 97.25 | 96.63 | 0.64% | 7.01% | 7.09% | -8 |
| 26/02/2030 | 6.65 | 96.75 | 96.38 | 0.38% | 7.05% | 7.09% | -5 |
| 22/04/2031 | 7.00 | 98.25 | 98.25 | 0.00% | 7.20% | 7.20% | 0 |
| 23/03/2032 | 7.00 | 97.63 | 97.5 | 0.13% | 7.27% | 7.28% | -1 |
| 02/11/2035 | 7.05 | 97.25 | 96.75 | 0.52% | 7.33% | 7.38% | -5 |
| 23/03/2037 | 7.25 | 97 | 96.25 | 0.78% | 7.55% | 7.62% | -8 |