Demand for the Lebanese Eurobonds fell over the past week, as reflected by the BLOM Bond Index (BBI) which lost 0.06% to reach 103.86 points.
The BBI was outperformed by the JP Morgan Emerging Markets’ Bond Index which gained a weekly 1.52% to 730.84 points.
Demand for Lebanese Eurobonds maturing in 5 years declined over the past week with the 5 year yield rising from 6.11% to 6.13% and with the 10 Year Yield rising from 6.71% to 6.73%.
With no strong hint at a US interest rate hike, demand for safe haven assets was more pronounced over the past week. The 5Y and 10Y yields for US treasuries dropped from last week’s 1.36% and 1.81% to 1.23% and 1.71%, respectively.
Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable broadened from 475 bps and 490 bps to 490 bps and 502 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)