Lebanon’s BLOM Bond Index (BBI) rose over the last week by 3.17% to close at 88.67 points. The yields on (5Y) and (10Y) Lebanese Eurobonds increased by 48 basis points (bps) to 11.68% and by 33 basis points (bps) to 11.61% respectively.
As for the JP Morgan Emerging Markets’ Bond Index (EMBI), it recorded a weekly increase by 0.06% and reached 771.51 points.
In the US, the Fed hiked interest rates by 25 basis points to a new band of 2.25%-2.5%. The decision, while expected, was unwelcome news to the stock market who was affected negatively .In details, investors fled riskier assets and headed toward a safer investment as they have started to worry more about economic growth slowing. As a result, U.S. treasury yields on the 10-year and 5-Year Treasury dropped by 10 and 12 basis points (bps), ending this week at 2.65% and 2.79 %, respectively.
The 5Y and 10Y spreads between the yield on the Lebanese Eurobonds and its US comparable widened by 58 and 45 basis points (bps) to stand at 903 bps and 882 bps respectively.
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 12/20/2018 | 12/13/2018 | Change | 12/20/2018 | 12/13/2018 | Change bps |
| 3/9/2020 | 6.375 | 96.347 | 94.88 | 1.55% | 9.60% | 10.89% | -128 |
| 4/14/2020 | 5.8 | 95.198 | 93.5 | 1.82% | 9.76% | 11.16% | -139 |
| 6/19/2020 | 6.15 | 94.632 | 93.13 | 1.61% | 10.10% | 11.20% | -110 |
| 4/12/2021 | 8.25 | 94.807 | 93.25 | 1.67% | 10.84% | 11.63% | -79 |
| 10/4/2022 | 6.1 | 86.169 | 84.5 | 1.98% | 10.62% | 11.20% | -58 |
| 1/27/2023 | 6 | 84.481 | 82.63 | 2.24% | 10.78% | 11.39% | -62 |
| 4/22/2024 | 6.65 | 83.37 | 80.88 | 3.08% | 10.83% | 11.53% | -70 |
| 11/4/2024 | 6.25 | 80.212 | 77.88 | 2.99% | 10.90% | 11.52% | -63 |
| 12/3/2024 | 7.00 | 83.632 | 80.85 | 3.44% | 10.80% | 11.52% | -73 |
| 2/26/2025 | 6.20 | 79.951 | 77 | 3.83% | 10.71% | 11.48% | -77 |
| 6/12/2025 | 6.25 | 80.542 | 76.88 | 4.76% | 10.46% | 11.38% | -92 |
| 11/28/2026 | 6.60 | 78.518 | 75.38 | 4.16% | 10.68% | 11.38% | -71 |
| 3/23/2027 | 6.85 | 79.039 | 76 | 4.00% | 10.74% | 11.40% | -66 |
| 11/29/2027 | 6.75 | 78.048 | 74.88 | 4.23% | 10.61% | 11.27% | -67 |
| 11/3/2028 | 6.65 | 76.808 | 73.25 | 4.86% | 10.47% | 11.19% | -71 |
| 2/26/2030 | 6.65 | 75.878 | 72 | 5.39% | 10.34% | 11.07% | -73 |
| 4/22/2031 | 7.00 | 73 | 72.25 | 1.04% | 11.06% | 11.20% | -14 |
| 3/23/2032 | 7.00 | 75.509 | 72.25 | 4.51% | 10.45% | 11.02% | -57 |
| 11/2/2035 | 7.05 | 74.918 | 72 | 4.05% | 10.19% | 10.66% | -46 |
| 3/23/2037 | 7.25 | 75.755 | 72 | 5.22% | 10.20% | 10.79% | -59 |