Lebanon’s BLOM Bond Index (BBI) decreased over the past 2 weeks, by 1.15% to reach 89.21 points mainly due to the political deadlock regarding the government’s formation. As such, the 5 yields on year (5Y) and 10Y Lebanese Eurobonds, increased by 30 and 39 basis points (bps) to reach 9.85% and 10.40% ,respectively this week.
For most of the past 2 weeks, yields on the 5y and 10Y treasuries have been decreasing with the exception of a short-lived uptick after a Federal Reserve statement confirming the health of the economy and further interest rates hikes.
The rapid depreciation of the Turkish Lira and the recent reports saying President Donald Trump would go ahead with another $200 billion imports tariffs on China next week pushed the US yields lower as investors rushed into haven assets. In fact, the JP Morgan Emerging Markets’ Bond Index (EMBI) recorded a 0.02% weekly decline to stand at 768.21points. Demand on treasuries strengthens during this week. The yields on 10Y treasuries decreased by a weekly 1bps to reach 2.86% while the yields on 5Y treasuries remained unchanged at 2.75%.
During the past 2 weeks, the 5Y and 10Y spread between the yield on the Lebanese Eurobonds and their US increased by 63 and 69 basis points (bps) to reach 710 and 754 bps respectively.
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 30/08/2018 | 16/08/2018 | Change | 30/08/2018 | 16/08/2018 | Change bps |
| 28/11/2019 | 5.45 | 96.25 | 97.25 | -1.03% | 8.68% | 7.70% | 98 |
| 09/03/2020 | 6.375 | 96.5 | 97.25 | -0.77% | 8.88% | 8.26% | 62 |
| 14/04/2020 | 5.8 | 95.38 | 96.13 | -0.78% | 8.91% | 8.31% | 61 |
| 19/06/2020 | 6.15 | 95.38 | 96.25 | -0.90% | 8.97% | 8.36% | 61 |
| 12/04/2021 | 8.25 | 96.88 | 98 | -1.14% | 9.62% | 9.10% | 52 |
| 04/10/2022 | 6.1 | 87.5 | 89.25 | -1.96% | 9.88% | 9.27% | 61 |
| 27/01/2023 | 6 | 86 | 88 | -2.27% | 10.00% | 9.35% | 66 |
| 22/04/2024 | 6.65 | 85 | 87.13 | -2.44% | 10.21% | 9.63% | 58 |
| 04/11/2024 | 6.25 | 82.13 | 84.25 | -2.52% | 10.22% | 9.67% | 55 |
| 03/12/2024 | 7.00 | 85.25 | 87.5 | -2.57% | 10.25% | 9.69% | 56 |
| 26/02/2025 | 6.20 | 81 | 83.25 | -2.70% | 10.28% | 9.72% | 57 |
| 12/06/2025 | 6.25 | 80.63 | 82.88 | -2.71% | 10.28% | 9.73% | 55 |
| 28/11/2026 | 6.60 | 79.5 | 82.5 | -3.64% | 10.35% | 9.72% | 64 |
| 23/03/2027 | 6.85 | 80 | 83.25 | -3.90% | 10.44% | 9.77% | 67 |
| 29/11/2027 | 6.75 | 78.75 | 81.88 | -3.82% | 10.38% | 9.75% | 62 |
| 03/11/2028 | 6.65 | 77 | 80 | -3.75% | 10.36% | 9.78% | 57 |
| 26/02/2030 | 6.65 | 76.13 | 79.63 | -4.40% | 10.23% | 9.61% | 62 |
| 22/04/2031 | 7.00 | 77 | 80.75 | -4.64% | 10.29% | 9.66% | 63 |
| 23/03/2032 | 7.00 | 77 | 80.5 | -4.35% | 10.16% | 9.59% | 57 |
| 02/11/2035 | 7.05 | 76.13 | 80.25 | -5.13% | 9.98% | 9.38% | 60 |
| 23/03/2037 | 7.25 | 77 | 81.25 | -5.23% | 10.00% | 9.40% | 60 |