Lebanese Eurobonds Followed the Emerging Market’s Bonds Downward Trend

Lebanese Eurobonds market witnessed a declining demand during the week, with the BLOM Bond Index (BBI) dropping 0.28% to end the week at 103.36 points. Similarly, the JP Morgan Emerging Markets’ Bond Index lost a weekly 0.20% to reach 766.75 points.

The Lebanese Eurobonds maturing in 5 and 10 years saw their yields increase from last week’s 6.14% and 6.70% to 6.17% and 6.80% this week, respectively.

In the US, Treasuries saw mixed demand over the past week, with the yields on the 5 Year maturities rising from 1.16% to 1.18%, while that of the 10 Year notes fell from 1.58% to 1.57%. Short and medium term maturities underperformed longer term treasuries after US Federal Reserve Chair Janet Yellen stated that there is a higher chance for increasing interest rates this year.

The spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable respectively broadened to 499 bps and 523 bps, from last week’s quote of 498 bps and 512 bps.

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