The BLOM Bond Index (BBI) increased by a weekly 0.25% to reach 104.98 points and was outpaced by the JP Morgan Emerging Markets’ Bond Index which rose by a weekly 0.74% to 764.12 points.
Demand for Lebanese Eurobonds maturing in 5 years and 10 years grew this past week with the yields on these respective maturities falling from 5.90% and 6.73% last week to 5.80% and 6.69% this week.
Demand for US treasuries maturing in 5 years and 10 years was also more pronounced over the past week with their yields dropping from 1.95% and 2.45% last week to 1.87% and 2.38%, respectively. The US government bond market was boosted by the treasury secretary‘s announcement of a potential issuance of 50 and 100 years bonds.
The 5 year spread between the Lebanese Eurobonds’ yields and the US treasuries narrowed by 2 basis points (bps) to 393 bps while the 10 year spread widened by 3 bps to 431 points.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 23/02/2017 | 16/02/2017 | |
| Lebanon | 426 | 435 |
| KSA | 98 | 102 |
| Dubai | 117 | 123 |
| Brazil | 220 | 228 |
| Turkey | 236 | 237 |