Improved Demand on Friday Boosted the Lebanese Eurobonds Market

The postponed of interest rates’ hike on the US front coupled with continuous problems on the Lebanese political scene seemed to have weighed in favor of the Lebanese fixed income market.  Accordingly, the BLOM Bond Index (BBI) increased by 0.03% to 105.72 points, narrowing its year-to-date loss to 1.63%. Yield on the 10Y Lebanese Eurobonds remained at its previous level of 6.35% for the 3rd consecutive session, while that of the 5Y dropped by 1 basis point (bp) to5.83%. Demand for medium-term US notes strengthened on Friday,causing the 5Y spread between the 5Y Lebanese and US notes to broaden by 4 bps to 438 bps. As for the Lebanese 5Y Credit Default Swaps (CDS), they narrowed from their pervious quotes of 375-405 bps to 373-400 bps.

 LastPrevious ChangeY-t-D Change
Weighted Yield5.74%5.75%-1 bps 
Duration (Years)4.984.98   
5Y Bond Yield5.83%5.84%-1bps 
5Y Spread*4384344bps 
10Y Bond Yield6.35%6.35%0bps 
10Y Spread*4224148bps 

*Between Lebanese and U.S notes

 PriceYield Yield Change (in bps)
Nov. 2016100.594.20%0
Mar. 2017106.254.65%-1
Oct. 2017100.384.80%0
Jun. 2018100.385.00%0
Nov. 2018100.135.10%-5
Apr. 2019100.755.27%0
May. 2019102.255.31%0
Mar. 2020103.135.57%-3
Apr. 2020100.755.61%-3
Apr. 2021110.885.93%0
Oct. 2022100.56.01%-2
Jan. 202399.636.06%-2
Dec. 2024105.256.24%-2
Feb. 202599.56.27%-2
Jun. 202599.56.32%-2
Nov. 2026100.756.50%1
Nov. 2027101.56.57%2
Feb. 203099.756.68%1








Leave a Reply

Your email address will not be published.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