Quiet Week for the Lebanese Eurobonds Market

The Lebanese Eurobonds improved over the past week with the BLOM Bond Index (BBI) adding 0.07% to 103.55 points.

Nevertheless, the Lebanese gauge could not outperform the JP Morgan Emerging Markets’ Bond Index which increased by a weekly 1.18% to 700.77 points.

Demand for both medium and long-term Lebanese Eurobonds stagnated as shown by the 5Y yield which barely lost 2 basis points (bps) to 6.26% while the 10Y yield steadied at 6.78%.

As for the US, demand for safe haven treasuries increased over the week as the US Federal Reserve refrained from increasing interest rates. Hence, the 5 Year and 10 Year yields in the US decreased from 1.45% and 1.93% to 1.39% and 1.91%, respectively.

Accordingly, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 483 bps and 485 bps to end the week at the same level of 487 bps.  

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

17/03/2016 10/03/2016
Lebanon 462 473
KSA 152 166
Dubai 199 218
Brazil 386 394
Turkey 247

256

 

Leave a Reply

Your email address will not be published. Required fields are marked *