Heavy Bond Supply This Past Week Lowers Prices of US Treasuries

The BLOM Bond Index (BBI) gained 0.10% during the past week to settle at 104.49 points. Meanwhile, the JP Morgan Emerging Markets’ Bond Index (EMBI) slid by 0.04% to end the week at 790.07 points.

The yields on the Lebanese Eurobonds maturing in 5 and 10 years slipped from last week’s 6.21% and 6.80% to 6.18% and 6.78% this week, respectively.

In the US, yields on the 5 year and 10 year treasuries increased from 1.82% and 2.27% last week to 1.84% and 2.32% this week, respectively. Higher yields which point to lower bond prices are due to the heavy supply of government and corporate debt this past week.

The 5 Year and 10 year spreads between the Lebanese Eurobonds and their US comparable fell from last week’s 439 basis points (bps) and 453 bps to 434 bps and 446 bps, this week, respectively.

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

  27/07/2017 20/07/2017
Lebanon 425 438
KSA 95 101
Dubai 120 123
Brazil 215 211
Turkey 183 181

Weekly Change of Lebanese Eurobonds Prices and Yields 

  Prices Weekly Yields Weekly
Maturity Coupon in % 27/07/2017 20/07/2017 Change 27/07/2017 20/07/2017 Change bps
12/06/2018 5.15 100.45 100.5 -0.05% 4.61% 4.57% 5
12/11/2018 5.15 100.45 100.5 -0.05% 4.78% 4.75% 3
23/04/2019 5.5 100.15 100.05 0.10% 5.40% 5.46% -6
20/05/2019 6 101 100.88 0.12% 5.41% 5.48% -8
28/11/2019 5.45 99.88 99.75 0.13% 5.50% 5.56% -6
09/03/2020 6.375 101.75 101.75 0.00% 5.64% 5.65% 0
14/04/2020 5.8 100.25 100.25 0.00% 5.70% 5.70% 0
19/06/2020 6.15 101 101 0.00% 5.77% 5.77% 0
12/04/2021 8.25 107.38 107.13 0.23% 6.00% 6.08% -8
04/10/2022 6.1 99.5 99.38 0.12% 6.21% 6.24% -3
27/01/2023 6 98.63 98.75 -0.12% 6.30% 6.27% 3
22/04/2024 6.65 101 100.88 0.12% 6.46% 6.48% -2
04/11/2024 6.25 98.75 98.63 0.12% 6.47% 6.49% -2
03/12/2024 7.00 103 102.88 0.12% 6.48% 6.50% -2
26/02/2025 6.20 98.25 98.13 0.12% 6.49% 6.51% -2
12/06/2025 6.25 98.25 98.13 0.12% 6.54% 6.56% -2
28/11/2026 6.60 99.63 99.38 0.25% 6.65% 6.69% -4
23/03/2027 6.85 100.63 100.5 0.13% 6.76% 6.78% -2
29/11/2027 6.75 99.63 99.5 0.13% 6.80% 6.82% -2
03/11/2028 6.65 98.38 98.38 0.00% 6.86% 6.86% 0
26/02/2030 6.65 98.25 98 0.26% 6.86% 6.89% -3
22/04/2031 7.00 100.13 100.25 -0.12% 6.98% 6.97% 1
23/03/2032 7.00 99.88 100 -0.12% 7.01% 7.00% 1
02/11/2035 7.05 99 99 0.00% 7.15% 7.15% 0
23/03/2037 7.25 100.13 100.13 0.00% 7.24% 7.24% 0

 

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