Lower Demand for Lebanese Eurobonds over the Past Week

Lower demand was registered for Lebanese Eurobonds over the past week, as reflected by the BLOM Bond Index (BBI) which lost 1.04% to reach 102.57 points.

The BBI was outperformed by the JP Morgan Emerging Markets’ Bond Index which gained a weekly 1.19% to 734.23 points.

Demand for Lebanese Eurobonds maturing in 5 years and 10 years declined over the past week with their yields rising from 6.15% and 6.78% to 6.38% and 7.00%, respectively.

In the US, the 5Y and 10Y yields for US treasuries rose from last week’s 1.1% and 1.57% to 1.25% and 1.74%, respectively.

However, the yields on US treasuries are rebounding from a low base since market worries regarding Brexit and the statements from the Federal Reserve and the Bank of Japan drove 10Y yields to 3 and a half years low.

Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable widened from 504 bps and 521 bps to 513 bps and 526 bps, respectively.  

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

023/06/201616/06/2016
Lebanon464473
KSA176185
Dubai185217
Brazil331347
Turkey259264

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