US Treasury Yields Rise as Fed Indicated Potential Interest Rate Hike

However, in the United States, demand for safe haven assets dropped with the yields on the 5 Year and 10 Year treasuries rising from 1.88% and 2.40% last week to 1.95% and 2.45% this week, respectively. Bond yields rose after Yellen stated in a testimony to officials on Tuesday that further rate hikes are likely in the coming months. 

The BLOM Bond Index (BBI) fell by a weekly 0.04% to reach 104.72 points. The Lebanese index was outperformed by the JP Morgan Emerging Markets’ Bond Index, which marginally dropped by a weekly 0.02% to 758.49 points.

Yields on the Lebanese Eurobonds maturing in 5 years and 10 years steadied at 5.90% and 6.73%, respectively.

The 5 year and 10 year spreads between the Lebanese Eurobonds’ yields and the USA treasuries dropped from 402 bps and 433 to 395 bps and 428, respectively.

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

16/02/2017 09/02/2017
Lebanon 435 443
KSA 102 109
Dubai 123 134
Brazil 228 234
Turkey 237

250

 

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