| || ||26/11/2015||19/11/2015|| Change||Year to Date|
|BLOM Bond Index (BBI)*|| ||102.660||102.720||-0.06%||-3.22%|
|Weighted Yield**|| ||6.38%||6.37%||1|| |
|Weighted Spread***|| ||467||468||-1|| |
Demand for Lebanese Eurobonds decreased over the past week pushing the BLOM Bond Index (BBI) down by 0.06% to 102.66 points. However, the JP Morgan Emerging Markets’ Bond Index outperformed the Lebanese gauge by gaining 0.16% to 683.5 points.
The yield on the 5Y Lebanese Eurobonds rose by 2 basis points (bps) to 6.50% while the 10Y yield stabilized at 6.87%.
Demand for safe haven US treasuries increased marginally over the week as the yield on the 5Y and 10Y US treasuries slid from 1.68% and 2.24% to 1.66% and 2.23%, respectively.
Consequently, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable rose from last week’s 480 bps and 463 bps to 484 bps and 464 bps, respectively.
Lebanon’s 5Y Credit Default Swaps (CDS) narrowed from last week’s 411-433 bps to 408-428 bps as did Dubai’s CDS quotes from 200-213 bps to 194-202 bps.
The CDS quotes that widened were those of Saudi Arabia going from 146-156 bps to 151-158 bps, those of Brazil from 394-398 bps to 419-426 bps and those of Turkey from 239-246 bps to 252-256 bps.