Demand for the Lebanese Eurobonds increased over the week, as reflected by the BLOM Bond Index (BBI) which added 0.06% to reach 104.24 points.
The BBI outperformed the JP Morgan Emerging Markets’ Bond Index which decreased by a weekly 1.00% to 714.32 points.
The BBI was boosted by higher demand for medium and long term maturities with the yields on the Lebanese Eurobonds maturing in 5 Years and 10 Years going from 6% and 6.68% to 5.97% and 6.66%, respectively.
US treasuries witnessed a lower demand this past week after the latest Federal Reserve statement hinted at a higher likelihood of an interest rate hike in June.
The 5Y and 10Y yields for US treasuries went up from 1.24% and 1.75% to 1.38% and 1.85%, respectively.
Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable narrowed from 476 bps and 493 bps to 459 bps and 481 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
