The demand on 5 year (5Y) and 10Y Eurobonds grew over the week, as the respective yields retreated from 7.16% and 7.78% to 6.95% and 7.7%, respectively. The BLOM Bond Index (BBI) ended the week at 99.59 points, adding a weekly 0.41% and thereby outpacing the JP Morgan Emerging Markets’ Bond Index (EMBI) which gained a marginal 0.28% to end the week at 790.02 points.
Investors preferred safe-haven investments this week on the back of the US administration announcing its decision on imposing new tariffs on steel and aluminum imports, effective as early as next week. The statement spooked investors now concerned about trade wars between the US and the rest of the world, namely China and Europe.
Investors’ concerns were reflected in the yields on 5Y and 10Y US treasuries, which slipped from 2.66% and 2.92% last week to 2.58% and 2.81% this week, respectively.
Accordingly, the 5Y spread between the yield on the Lebanese Eurobonds and its US comparable shrank from 450 basis points (bps) last week to 437 bps. Meanwhile, the 10Y spread widened from 486 bps last week to 489bps this week.
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 01/03/2018 | 22/02/2018 | Change | 01/03/2018 | 22/02/2018 | Change bps |
| 23/04/2019 | 5.5 | 99 | 98.88 | 0.12% | 6.41% | 6.50% | -9 |
| 20/05/2019 | 6 | 99.5 | 99.38 | 0.12% | 6.42% | 6.52% | -9 |
| 28/11/2019 | 5.45 | 98.25 | 98 | 0.26% | 6.52% | 6.66% | -14 |
| 09/03/2020 | 6.375 | 99.38 | 99 | 0.38% | 6.71% | 6.90% | -20 |
| 14/04/2020 | 5.8 | 98.2 | 97.75 | 0.46% | 6.72% | 6.94% | -22 |
| 19/06/2020 | 6.15 | 98.75 | 98.25 | 0.51% | 6.74% | 6.97% | -23 |
| 12/04/2021 | 8.25 | 103.75 | 103.13 | 0.60% | 6.89% | 7.11% | -23 |
| 04/10/2022 | 6.1 | 96.5 | 95.75 | 0.78% | 7.00% | 7.20% | -19 |
| 27/01/2023 | 6 | 95.75 | 94.88 | 0.92% | 7.04% | 7.25% | -21 |
| 22/04/2024 | 6.65 | 96.88 | 96 | 0.92% | 7.29% | 7.47% | -18 |
| 04/11/2024 | 6.25 | 94.5 | 93.5 | 1.07% | 7.30% | 7.50% | -20 |
| 03/12/2024 | 7.00 | 98.25 | 97.25 | 1.03% | 7.33% | 7.52% | -19 |
| 26/02/2025 | 6.20 | 93.75 | 92.88 | 0.94% | 7.36% | 7.53% | -17 |
| 12/06/2025 | 6.25 | 93.63 | 92.75 | 0.95% | 7.39% | 7.56% | -16 |
| 28/11/2026 | 6.60 | 93.63 | 93.13 | 0.54% | 7.61% | 7.69% | -8 |
| 23/03/2027 | 6.85 | 94.38 | 93.88 | 0.53% | 7.72% | 7.80% | -8 |
| 29/11/2027 | 6.75 | 93.13 | 92.75 | 0.41% | 7.77% | 7.82% | -6 |
| 03/11/2028 | 6.65 | 91.38 | 91.13 | 0.27% | 7.86% | 7.89% | -4 |
| 26/02/2030 | 6.65 | 89.75 | 89.88 | -0.14% | 7.99% | 7.97% | 2 |
| 22/04/2031 | 7.00 | 91.75 | 91.88 | -0.14% | 8.03% | 8.01% | 2 |
| 23/03/2032 | 7.00 | 91.25 | 91.5 | -0.27% | 8.05% | 8.02% | 3 |
| 02/11/2035 | 7.05 | 90.5 | 90.88 | -0.42% | 8.07% | 8.02% | 4 |
| 23/03/2037 | 7.25 | 91 | 91.75 | -0.82% | 8.19% | 8.11% | 8 |