Higher demand for short-term maturities pushed slightly up by 0.05% the BLOM Bond Index (BBI), an index that tracks the performance of the Lebanese Eurobonds, over the past week, to 104.83 points. However, the BBI lagged behind the JP Morgan Emerging Markets’ Bond Index that gained 0.78%, during the same period, to 680.25 points.
The yield on the Lebanese Eurobonds maturing in 5Y steadied at 6.00% while that of the 10Y added 1 basis point (bp) to 6.49%.
In the United States, global turmoil has increased demand for government debt. Hence, the 5Y and 10Y yields dropped 6 bps and 8 bps to 1.34% and 2.04%, respectively. Consequently, the spread between the yields on the 5Y Lebanese Eurobonds and their US comparable widened from 460 bps to 466 bps and that of the 10Y broadened from 436 bps last week to 445 bps.
Lebanon’s 5Y Credit Default Swaps (CDS) went from 395-405 bps to 394-417 bps. The 5Y CDS quotes of Saudi Arabia and of Dubai broadened to 127-137 bps and 191-202 bps from last week’s quotes of 117-122 bps and 190-195 bps, respectively. Similarly, the 5Y CDS of Brazil widened from 420-426bps to 425-431 bps. As for Turkey their 5Y CDS quotes narrowed from 270-274 bps to 261-267 bps this week.