The BLOM Bond Index (BBI) increased by 0.03% over the period ranging from 6 to 20 April 2017 and settled at 106.66 points. The Lebanese index was outpaced by the JP Morgan Emerging Markets’ Bond Index (EMBI) which rose by 0.74% to 776.79 points over the above mentioned period.
Demand for Lebanese Eurobonds maturing in 5 and 10 years was contrasted over the past two weeks. The yield on the Lebanese Eurobonds maturing in 5 years rose from 5.20% on 06/04/2017 to 5.49% on 20/04/2017 while that of the Lebanese Eurobonds maturing in 10 years fell from 6.51% to 6.48% over the same period.
In the U.S., demand for treasuries increased as shown by the decline in the yields on the 5 Year and 10 Year notes from 1.87% and 2.34% on 06/04/2017 to 1.78% and 2.24% on 20/04/2017, respectively.
Demand for safe-haven US treasuries was underpinned by geopolitical tensions, the uncertainty revolving around the French election but also by President Trump stating that he is in favour of a low-interest rates policy.
The 5 year and 10 year spread between the Lebanese Eurobonds’ yields and the US treasuries broadened by 38 basis points (bps) and 7 bps to stand at 371 bps and 424 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 20/04/2017 | 06/04/2017 | |
| Lebanon | 380 | 376 |
| KSA | 91 | 93 |
| Dubai | 111 | 112 |
| Brazil | 227 | 225 |
| Turkey | 230 | 236 |
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 20/04/2017 | 06/04/2017 | Change | 20/04/2017 | 06/04/2017 | Change bps |
| 12/06/2018 | 5.15 | 101.25 | 101.38 | -0.13% | 4.02% | 3.94% | 8 |
| 12/11/2018 | 5.15 | 101.5 | 101.5 | 0.00% | 4.15% | 4.17% | -2 |
| 23/04/2019 | 5.5 | 101.88 | 102 | -0.12% | 4.51% | 4.47% | 4 |
| 20/05/2019 | 6 | 102.88 | 103 | -0.12% | 4.53% | 4.50% | 3 |
| 28/11/2019 | 5.45 | 102.25 | 102.13 | 0.12% | 4.52% | 4.58% | -6 |
| 09/03/2020 | 6.375 | 104.25 | 104.5 | -0.24% | 4.78% | 4.71% | 7 |
| 14/04/2020 | 5.8 | 102.5 | 102.38 | 0.12% | 4.89% | 4.94% | -5 |
| 19/06/2020 | 6.15 | 103.25 | 103.13 | 0.12% | 5.02% | 5.08% | -5 |
| 12/04/2021 | 8.25 | 110.63 | 110.88 | -0.23% | 5.25% | 5.21% | 4 |
| 04/10/2022 | 6.1 | 103 | 102.75 | 0.24% | 5.46% | 5.51% | -6 |
| 27/01/2023 | 6 | 102.25 | 101.88 | 0.36% | 5.54% | 5.61% | -8 |
| 22/04/2024 | 6.65 | 103.25 | 103 | 0.24% | 6.07% | 6.12% | -5 |
| 04/11/2024 | 6.25 | 100.75 | 100.38 | 0.37% | 6.12% | 6.19% | -6 |
| 03/12/2024 | 7.00 | 105.15 | 104.75 | 0.38% | 6.14% | 6.21% | -7 |
| 26/02/2025 | 6.20 | 100.25 | 99.75 | 0.50% | 6.16% | 6.24% | -8 |
| 12/06/2025 | 6.25 | 100.25 | 99.75 | 0.50% | 6.21% | 6.29% | -8 |
| 28/11/2026 | 6.60 | 101.25 | 101.75 | -0.49% | 6.42% | 6.35% | 7 |
| 23/03/2027 | 6.85 | 102.25 | 102.63 | -0.37% | 6.54% | 6.49% | 5 |
| 29/11/2027 | 6.75 | 101.25 | 101.38 | -0.13% | 6.58% | 6.57% | 2 |
| 03/11/2028 | 6.65 | 100.13 | 99.75 | 0.38% | 6.63% | 6.68% | -5 |
| 26/02/2030 | 6.65 | 99.88 | 99.5 | 0.38% | 6.66% | 6.71% | -4 |
| 22/04/2031 | 7.00 | 101.5 | 101 | 0.50% | 6.83% | 6.89% | -6 |
| 23/03/2032 | 7.00 | 101.38 | 101.25 | 0.13% | 6.85% | 6.86% | -1 |
| 02/11/2035 | 7.05 | 100 | 100 | 0.00% | 7.05% | 7.05% | 0 |
| 23/03/2037 | 7.25 | 101 | 101.25 | -0.25% | 7.15% | 7.13% | 2 |