Lebanese Eurobonds Registered Their Second Consecutive Weekly Decline

Demand for the Lebanese Eurobonds fell over the past week, as reflected by the BLOM Bond Index (BBI) which lost 0.06% to reach 104.00 points.

The BBI was outperformed by the JP Morgan Emerging Markets’ Bond Index which gained a weekly 0.39% to 719.9 points.

Demand for Lebanese Eurobonds maturing in 5 years declined over the past week with the 5 year yield rising from 6.00% to 6.11% this week while the 10 Year yield stabilized at 6.71%.

The 5Y and 10Y yields for US treasuries moved in opposite directions this week with the 5Y yield edging up from 1.35% to 1.36% while the 10Y yield dropped from 1.83% to 1.81%.

Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 465 bps and 488 bps to 475 bps and 490 bps, respectively.

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

0 26/05/2016 26/05/2016
Lebanon 456 457
KSA 166 166
Dubai 220 210
Brazil 344 350
Turkey 260 274

 

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