Lebanese Eurobonds Market down This Week

The Lebanese Eurobonds Market fell this week as portrayed by the 0.65% drop in the BLOM Bond Index (BBI) to 102.54 points. The JP Morgan Emerging Markets’ Bond Index was also down by 0.48% over the week to 766.8 points.

The yield on the Lebanese Eurobonds maturing in 5Y grew from 6.22% last week to 6.32% this week while the yield on the 10Y Lebanese Eurobonds rose from 6.81% to 6.99% over the same period.

In the US the yield on the US treasuries maturing in 5Y barely moved from last week’s 1.28% to 1.27% this week while the yield on the US treasuries maturing in 10Y steadied at 1.75%.  Investors are not only keeping an eye on Fed statements but also on the state of the Chinese economy and the Brexit process.

The spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable widened over the past week from 494 bps and 506 bps to 505 bps and 524 bps, respectively.

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

  13/10/2016 06/10/2016
Lebanon 487 485
KSA 153 156
Dubai 154 156
Brazil 264 272
Turkey 262 249

 

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