Weak Demand for Lebanese Eurobonds a Day Before Eid Al-Adha

Appetite for Lebanese Eurobonds faded on Wednesday, as revealed by the BLOM Bond Index (BBI) that declined by 0.13% to settle at 105.56 points, thus broadening its year-to-date loss to 1.78%. Yields on the 5Y and 10Y Lebanese Eurobonds increased by 4 basis points (bps) and 1 bp to 5.82% and 6.37%, respectively. Demand for medium-term US notes weakened on Wednesday, however at a slower pace than that of its Lebanese counterpart, causing the spread between both maturities to widen by 1 bp to 435 bps. As for the Lebanese 5Y Credit Default Swaps (CDS), they broadened from 393-415 bps to 403-428 bps bps.

 LastPrevious ChangeY-t-D Change
Weighted Yield5.78%5.74%4 bps 
Duration (Years)4.974.97   
5Y Bond Yield5.82%5.78%4bps 
5Y Spread*4354341bps 
10Y Bond Yield6.37%6.36%1bps 
10Y Spread*421422-1bps 

*Between Lebanese and U.S notes

 PriceYield Yield Change (in bps)
Nov. 2016100.584.21%0
Mar. 20171064.78%16
Oct. 2017100.134.93%13
Jun. 20181005.15%15
Nov. 201899.755.24%13
Apr. 2019100.755.27%0
May. 2019102.255.31%0
Mar. 20201035.60%3
Apr. 2020100.635.64%3
Apr. 2021110.885.92%2
Oct. 2022100.386.03%0
Jan. 202399.56.08%2
Dec. 2024105.256.24%0
Feb. 202599.386.29%0
Jun. 202599.386.33%0
Nov. 2026100.56.53%3
Nov. 2027101.386.58%1
Feb. 203099.56.70%0








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