Lebanese Eurobonds Market Improves This Week

As Reflected by the BLOM Bond Index (BBI), the Lebanese Eurobonds market observed a slight growth in the past week, where the index rose by 0.10% to 103.49 points, mainly due to the higher demand for long term Lebanese Eurobonds.

However, the BBI outperformed the JP Morgan Emerging Markets’ Bond Index which lost a weekly 0.22% to 756.5 points.

Demand for Lebanese Eurobonds maturing in 10 years increased over the past week with their yields declining from 6.85% to 6.81%, while yield of Eurobonds maturing in 5 years remained constant at 6.18%.

Meanwhile in the US, and over the same period, the yields on the US treasuries maturing in 5 years and 10 years increased from 1.10% and 1.53% to 1.11% and 1.57%, respectively. Investors’ appetite for the US treasuries decreased in favour of the riskier assets, as the American economy strengthens.

Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable narrowed from 508 bps and 532 bps to 507 bps and 524 bps, respectively.

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



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