Stagnant Activity on the Lebanese Eurobonds Market During the Past Week

The Lebanese Eurobonds remained relatively stable over the past week as shown by the BLOM Bond Index (BBI) which steadied at 103.36 points, as investors moved from medium term notes into longer maturities. The Lebanese gauge was outpaced by the JP Morgan Emerging Markets’ Bond Index which increased by a weekly 0.72% to 679.30 points.

The yield on the 5 Year Lebanese Eurobonds went up from last week’s 6.36% to 6.37%, while that of the 10 Year Lebanese Eurobonds dropped from 6.82% to 6.80%.

In the U.S., treasuries strengthened last week as low oil prices and a sharp decline in China’s equity markets fuelled demand for haven assets. Therefore, 5 Year and 10 Year yields in the US fell from 1.21% and 1.75% to 1.16% and 1.71%, respectively.

Accordingly, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 515 bps and 507 bps to 521 bps and 509 bps, respectively.  

5 Year Credit Default Swaps, Mid-Prices (in basis points)

25/02/2016 18/02/2016
Lebanon 474 470
KSA 178 179
Dubai 235 243
Brazil 452 480
Turkey 303 307

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