Over the past week, the BLOM Bond Index (BBI) gained a marginal 0.15% to reach 103.96 points. It was surpassed by the JP Morgan Emerging Markets’ Bond Index (EMBI) which rose by 0.49%, ending the week at 798.87 points.
The yields on the 5Y Lebanese Eurobonds contracted from last week’s 6.31% to 6.28%, while the yields on the Lebanese Eurobonds maturing in 10Y remained unchanged at 6.90% this week.
In the US, investors’ appetite for safe haven assets was renewed, especially on 10Y T-bills. As such, the yields on the 10 year T-bills declined from 2.19% to 2.01% this week, while yields on the 5Y T-bills incrementally rose from 1.76% on Aug. 17th to 1.78% on Aug.24th. In fact, throughout the week, Trump threatened to shut down the government if Congress refuses to ensure funding for his controversial wall along the Mexican border, which shed further doubts on his pro-growth agenda coming to fruition.
The 5 year (Y) spread between the Lebanese Eurobonds and their US comparable declined from 455 to 450 basis points (bps), while the 10Y spread rose from 471 bps last week to 489 bps this week.
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 24/08/2017 | 17/08/2017 | Change | 24/08/2017 | 17/08/2017 | Change bps |
| 12/11/2018 | 5.15 | 100.63 | 100.5 | 0.13% | 4.61% | 4.72% | -12 |
| 23/04/2019 | 5.5 | 100.5 | 99.9 | 0.60% | 5.18% | 5.56% | -38 |
| 20/05/2019 | 6 | 101.3 | 100.75 | 0.55% | 5.20% | 5.54% | -34 |
| 28/11/2019 | 5.45 | 100.38 | 99.5 | 0.88% | 5.27% | 5.68% | -42 |
| 09/03/2020 | 6.375 | 102 | 101.5 | 0.49% | 5.52% | 5.73% | -22 |
| 14/04/2020 | 5.8 | 100.38 | 99.75 | 0.63% | 5.64% | 5.90% | -26 |
| 19/06/2020 | 6.15 | 101.13 | 100.5 | 0.63% | 5.71% | 5.95% | -25 |
| 12/04/2021 | 8.25 | 107 | 106.75 | 0.23% | 6.07% | 6.15% | -8 |
| 04/10/2022 | 6.1 | 99.13 | 99 | 0.13% | 6.30% | 6.33% | -3 |
| 27/01/2023 | 6 | 98.25 | 98 | 0.26% | 6.39% | 6.44% | -5 |
| 22/04/2024 | 6.65 | 100.25 | 100.25 | 0.00% | 6.60% | 6.60% | 0 |
| 04/11/2024 | 6.25 | 98 | 98 | 0.00% | 6.60% | 6.60% | 0 |
| 03/12/2024 | 7.00 | 102.25 | 102.25 | 0.00% | 6.60% | 6.60% | 0 |
| 26/02/2025 | 6.20 | 97.5 | 97.63 | -0.13% | 6.63% | 6.60% | 2 |
| 12/06/2025 | 6.25 | 97.5 | 97.63 | -0.13% | 6.66% | 6.64% | 2 |
| 28/11/2026 | 6.60 | 98.88 | 99.13 | -0.25% | 6.76% | 6.73% | 4 |
| 23/03/2027 | 6.85 | 99.88 | 99.88 | 0.00% | 6.87% | 6.87% | 0 |
| 29/11/2027 | 6.75 | 98.75 | 98.75 | 0.00% | 6.92% | 6.92% | 0 |
| 03/11/2028 | 6.65 | 97.25 | 97.25 | 0.00% | 7.01% | 7.01% | 0 |
| 26/02/2030 | 6.65 | 96.88 | 97 | -0.12% | 7.03% | 7.01% | 2 |
| 22/04/2031 | 7.00 | 99.38 | 99.5 | -0.12% | 7.07% | 7.06% | 1 |
| 23/03/2032 | 7.00 | 99 | 99 | 0.00% | 7.11% | 7.11% | 0 |
| 02/11/2035 | 7.05 | 97.75 | 98 | -0.26% | 7.27% | 7.25% | 3 |
| 23/03/2037 | 7.25 | 98.63 | 99 | -0.37% | 7.38% | 7.35% | 4 |