Slight Dip in Lebanese Eurobonds Despite Correction on US Front on Thursday

Demand for medium and long term Lebanese Eurobonds continued their downturn on Thursday, as the BLOM Bond Index (BBI) ticked down by 0.09% to settle at 107.34 points. The yields on the 5Y and 10Y Lebanese Eurobonds augmented by 2 basis points (bps) each to settle at 5.24% and 6.03%, respectively. The spread between the yields on the 5Y Lebanese Eurobonds and its US counterpart broadened by 5 bps to 369 bps. This was on the back of the correction in demand for US mid-term notes illustrated by a 3 bps decrease in the yield on 5Y notes to 1.55%. Lebanon’s 5Y Credit Default Swaps (CDS) remained stagnant at their previous quote of 372-391 bps.

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