US Treasuries Higher Amid positivity in US-China Trade Talks

Lebanon’s BLOM Bond Index (BBI) increased over the last week by 0.10% to close at 85.94 points. The yields on (5Y) and (10Y) Lebanese Eurobonds moved in adverse sense. In fact the (5Y) Lebanese Eurobonds decreased by 4 basis points (bps) to reach 11.20% while the (10Y) Lebanese Eurobonds increased by 6 basis points (bps) to reach 11.28%.
As for the JP Morgan Emerging Markets’ Bond Index (EMBI), it recorded a weekly increase by 0.96% and reached 771.04 points.

In the US, the yields on the (5Y) ended the week with no change to stand at 2.75% while the yields on the (10Y) witnessed a weekly increase of 4 bps to end the week at 2.91%.
In fact, treasury prices fell Wednesday, pushing yields modestly higher after a series of positive developments in U.S.-China trade talks gave advantage for equity markets. Moreover, the U.S. consumer-price index for November was flat after a 0.3% increase in October. However, investors remain cautious about the Fed decision with its December interest rate hike.

The 5Y spreads between the yield on the Lebanese Eurobonds and its US comparable narrowed from 849 basis points (bps) last week to 845 bps this week while the 10Y spread winded from 835 bps last week to 837 bps this week

Weekly Change of Lebanese Eurobonds Prices

 

  Prices Weekly Yields   Weekly
Maturity Coupon in % 13/12/2018 06/12/2018 Change 13/12/2018 06/12/2018 Change bps
09/03/2020 6.375 94.88 94.63 0.26% 10.89% 11.04% -16
14/04/2020 5.8 93.5 93.38 0.13% 11.16% 11.19% -3
19/06/2020 6.15 93.13 93 0.14% 11.20% 11.23% -4
12/04/2021 8.25 93.25 92.63 0.67% 11.63% 11.93% -30
04/10/2022 6.1 84.5 84.38 0.14% 11.20% 11.23% -2
27/01/2023 6 82.63 82.5 0.16% 11.39% 11.41% -2
22/04/2024 6.65 80.88 80.75 0.16% 11.53% 11.55% -2
04/11/2024 6.25 77.88 78 -0.15% 11.52% 11.47% 5
03/12/2024 7.00 80.85 81 -0.19% 11.52% 11.47% 5
26/02/2025 6.20 77 77 0.00% 11.48% 11.47% 1
12/06/2025 6.25 76.88 76.88 0.00% 11.38% 11.37% 1
28/11/2026 6.60 75.38 75.5 -0.16% 11.38% 11.35% 4
23/03/2027 6.85 76 76.13 -0.17% 11.40% 11.36% 4
29/11/2027 6.75 74.88 75 -0.16% 11.27% 11.24% 3
03/11/2028 6.65 73.25 73.5 -0.34% 11.19% 11.13% 6
26/02/2030 6.65 72 72 0.00% 11.07% 11.06% 1
22/04/2031 7.00 72.25 72.5 -0.34% 11.20% 11.15% 5
23/03/2032 7.00 72.25 72.38 -0.18% 11.02% 11.00% 3
02/11/2035 7.05 72 71.75 0.35% 10.66% 10.70% -4
23/03/2037 7.25 72 71.88 0.17% 10.79% 10.80% -2

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