The BLOM Bond Index (BBI) fell by a weekly 0.78% to reach 104.19 points; nonetheless, it outperformed the JP Morgan Emerging Markets’ Bond Index which also dropped by a weekly 0.91% to 755.85 points.
Demand for Lebanese Eurobonds maturing in 5 and 10 years plunged this week. As such, the 5Y yields rose from 5.76% to 5.96% and the 10Y yields rose from 6.72% to 6.93%.
Moreover, demand for US treasuries maturing in 5 years and 10 years also witnessed a downfall during the week with their yields increasing from 2.03% and 2.45% to 2.13% and 2.60%, respectively. Yields on US treasuries rose after Federal Reserve officials strongly signaled that they plan to raise interest rates at their March 14,15 policy meeting. In addition, yields also rallied on the back of the European Central Bank’s (ECB) President Mario Draghi comments that suggested the ECB was becoming more optimistic about the Eurozone economy and less inclined to provide additional stimulus.
The 5 year and 10 year spread between the Lebanese Eurobonds’ yields and the US treasuries broadened by 10 bps and 6 bps to stand at 383 bps and 433 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 09/03/2017 | 02/03/2017 | |
| Lebanon | 444 | 414 |
| KSA | 97 | 94 |
| Dubai | 121 | 116 |
| Brazil | 236 | 224 |
| Turkey | 240 | 244 |
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 09/03/2017 | 02/03/2017 | Change | 09/03/2017 | 02/03/2017 | Change bps |
| 12/06/2018 | 5.15 | 101 | 101 | 0.00% | 4.33% | 4.34% | -1 |
| 12/11/2018 | 5.15 | 101.25 | 101.13 | 0.12% | 4.37% | 4.45% | -8 |
| 23/04/2019 | 5.5 | 100.75 | 101.25 | -0.49% | 5.13% | 4.88% | 24 |
| 20/05/2019 | 6 | 101.75 | 102.25 | -0.49% | 5.15% | 4.92% | 23 |
| 28/11/2019 | 5.45 | 100.63 | 101.13 | -0.49% | 5.20% | 5.00% | 20 |
| 09/03/2020 | 6.375 | 102.5 | 103 | -0.49% | 5.46% | 5.29% | 17 |
| 14/04/2020 | 5.8 | 100.75 | 101.25 | -0.49% | 5.54% | 5.36% | 17 |
| 19/06/2020 | 6.15 | 101.25 | 102.13 | -0.86% | 5.73% | 5.44% | 29 |
| 12/04/2021 | 8.25 | 108.5 | 109.5 | -0.91% | 5.88% | 5.63% | 25 |
| 04/10/2022 | 6.1 | 100 | 100.75 | -0.74% | 6.10% | 5.94% | 16 |
| 27/01/2023 | 6 | 99.5 | 99.75 | -0.25% | 6.11% | 6.06% | 5 |
| 22/04/2024 | 6.65 | 100.5 | 101 | -0.50% | 6.57% | 6.48% | 9 |
| 04/11/2024 | 6.25 | 98 | 98.5 | -0.51% | 6.60% | 6.51% | 9 |
| 03/12/2024 | 7.00 | 102.25 | 102.75 | -0.49% | 6.65% | 6.57% | 8 |
| 26/02/2025 | 6.20 | 97.25 | 97.75 | -0.51% | 6.66% | 6.57% | 8 |
| 12/06/2025 | 6.25 | 97.25 | 97.75 | -0.51% | 6.70% | 6.61% | 8 |
| 28/11/2026 | 6.60 | 97.75 | 99.13 | -1.39% | 6.92% | 6.73% | 20 |
| 29/11/2027 | 6.75 | 97.63 | 99.5 | -1.88% | 7.07% | 6.82% | 25 |
| 03/11/2028 | 6.65 | 96.5 | 98.25 | -1.78% | 7.11% | 6.88% | 23 |
| 26/02/2030 | 6.65 | 97 | 98.13 | -1.15% | 7.01% | 6.87% | 14 |
| 22/04/2031 | 7.00 | 98.5 | 99.5 | -1.01% | 7.19% | 7.08% | 11 |
| 02/11/2035 | 7.05 | 98 | 99.25 | -1.26% | 7.26% | 7.13% | 12 |