In Lebanon, constant disappointment on the political front prevailed. Failure to form a government for more than 8 months coupled with a peaking balance of payments and fiscal deficit has taken its toll on the Lebanese safe haven assets. The BLOM Bond Index (BBI) reflected the loss of confidence in Lebanese Eurobonds. The index plunged by a yearly 12.47% to 88.46 points, compared to marginal fall of 0.2% in the previous year. Hence, the weighted average yield of Lebanese Eurobonds, which is in an inverse relation of bond prices, surged during 2018. In fact, the weighted yield escalated by 371 bps in 2018 to reach one of its highest levels, 10.61%.
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LEbanese Eurobonds Performance in 2018