Higher Demand for Both Lebanese Eurobonds and US Treasuries over the Past Week

The Lebanese Eurobonds saw an improvement over the past week as revealed by the BLOM Bond Index (BBI) which increased by 0.09% to reach 103.87 points.

The positive performance of the Lebanese gauge was matched by a lesser improvement in the JP Morgan Emerging Markets’ Bond Index which increased by a weekly 0.02% to 715.67 points.

The BBI was boosted by higher demand for medium and long term maturities with the yields on the Lebanese Eurobonds maturing in 5 Years and 10 Years going from 6.13% and 6.79% to 6.11% and 6.73%, respectively.

Demand for US treasuries improved as global economic concerns continue to fuel investors’ risk aversion. Hence, the 5Y and 10Y yields in the US decreased from 1.33% and 1.87% last week to 1.20% and 1.76%, respectively.

Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable broadened from 480 basis points (bps) and 492 bps to end the week at 491 bps and 497 bps, respectively.  

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

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