Lebanese Eurobonds Remain in the Green this Week

Another weekly improvement was depicted on the Lebanese Eurobonds’ market as revealed by the BLOM Bond Index (BBI) that increased by 0.66% to 106.63 points. It was also able to beat the JP Morgan Emerging Markets’ Bond Index which registered a weekly rise of 0.12% to 771.1 points. This could be explained by the low-yield environment in the emerging markets, which increased foreign interest in the Lebanese Eurobonds’ market.

Demand for Lebanese Eurobonds maturing in 5 and 10 years increased, going from last week’s 5.28% and 6.54% to 5.20% and 6.51% this week, respectively.

In the U.S., demand for treasuries went up this week on rising uncertainties following the release of the Federal Reserve’s March meeting’s minutes. In fact, the Fed is expected to start reducing the size of its $4.5T balance sheet later this year if economic growth maintained its upward trend. Hence, the 5Y and 10Y yields on U.S. treasuries respectively went down by 9 basis points (bps) and 8 bps to 1.87% and 2.34%.

The 5 year and 10 year spread between the Lebanese Eurobonds’ yields and the US treasuries broadened by 1 basis point (bps) and 5 bps to stand at 333 bps and 417 bps, respectively.

06/04/2017 30/03/2017  Change Year to Date
BLOM Bond Index (BBI)* 106.63 105.93 0.66% 4.64%
Weighted Yield** 5.72% 5.67% 0.96% -14%
Weighted Spread*** 415 412 0.73% -20%

 

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

30/03/2017 23/03/2017
Lebanon 376 419
KSA 93 99
Dubai 112 121
Brazil 225 239
Turkey 236 235

 

Prices Weekly Yields Weekly
Maturity Coupon in % 06/04/2017 30/03/2017 Change 06/04/2017 30/03/2017 Change bps
12/06/2018 5.15 101.38 101.25 0.13% 3.94% 4.05% -11
12/11/2018 5.15 101.5 101.38 0.12% 4.17% 4.25% -8
23/04/2019 5.5 102 102 0.00% 4.47% 4.47% 0
20/05/2019 6 103 103 0.00% 4.50% 4.50% 0
28/11/2019 5.45 102.13 102.13 0.00% 4.58% 4.58% 0
09/03/2020 6.375 104.5 104.5 0.00% 4.71% 4.71% 0
14/04/2020 5.8 102.38 102.38 0.00% 4.94% 4.94% 0
19/06/2020 6.15 103.13 103.25 -0.12% 5.08% 5.04% 4
12/04/2021 8.25 110.88 110.88 0.00% 5.21% 5.21% 0
04/10/2022 6.1 102.75 102.63 0.12% 5.51% 5.54% -3
27/01/2023 6 101.88 101.75 0.13% 5.61% 5.64% -3
22/04/2024 6.65 103 102.88 0.12% 6.12% 6.14% -2
04/11/2024 6.25 100.38 100.25 0.13% 6.19% 6.21% -2
03/12/2024 7.00 104.75 104.63 0.11% 6.21% 6.23% -2
26/02/2025 6.20 99.75 99.75 0.00% 6.24% 6.24% 0
12/06/2025 6.25 99.75 99.88 -0.13% 6.29% 6.27% 2
28/11/2026 6.60 101.75 101.5 0.25% 6.35% 6.39% -3
23/03/2027 6.85 102.63 102.38 0.24% 6.49% 6.52% -3
29/11/2027 6.75 101.38 101.25 0.13% 6.57% 6.58% -2
03/11/2028 6.65 99.75 99.5 0.25% 6.68% 6.71% -3
26/02/2030 6.65 99.5 99.13 0.37% 6.71% 6.75% -4
22/04/2031 7.00 101 101 0.00% 6.89% 6.89% 0
23/03/2032 7.00 101.25 101.13 0.12% 6.86% 6.88% -1
02/11/2035 7.05 100 100 0.00% 7.05% 7.05% 0
23/03/2037 7.25 101.25 101.13 0.12% 7.13% 7.14% -1

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