| 10/09/2015 | 03/09/2015 | Change | Year to Date | ||
| BLOM Bond Index (BBI)* | 105.716 | 105.708 | 0.01% | -0.34% | |
| Weighted Yield** | 5.75% | 5.77% | -2 | 73 | |
| Weighted Spread*** | 420 | 418 | 2 | -10 |
The BLOM Bond Index (BBI), tracking the performance of the Lebanese Eurobonds market, gained a negligible weekly 0.01% to 105.716 points and was outperformed by the JP Morgan Emerging Markets’ Bond Index which gained a weekly 0.14% to 669.65 points.
The yield on the Lebanese Eurobonds maturing in 5Y grew from 5.75% to 5.84% while the 10Y yield rose from 6.30% to 6.34%.
In the US, an increase was registered by both the yields on the 5Y and 10Y US Treasuries especially since the Federal Open Market Committee may decide to increase interest rates during its next meeting on September 17th. The 5Y and 10Y yields grew from 1.49% and 2.18% to 1.55% and 2.23%, respectively. In fact, higher oil prices on Thursday and a new slew of corporate debt sales, which offer higher returns than US debt, lowered demand for safe investments in US treasuries.
Consequently, the spread between the yields on the 5Y Lebanese Eurobonds and their US comparable widened from 426 bps to 429 bps while the 10Y spread narrowed from 412 bps to 411 bps.
Lebanon’s 5Y Credit Default Swaps (CDS) widened from last week’s 383-408 bps to 386-411 bps. The 5Y CDS quotes of Saudi Arabia narrowed from last week’s 80-90 bps to 45-55 bps as did the CDS quotes of Dubai going from 190-203 bps to 175-185 bps. As for Turkey, the 5Y CDS quotes widened from 272-275 bps to 290-292 bps while Brazil’s 5Y CDS quotes broadened from 372-377 bps to 388-393 bps.