Following the government’s formation, pressure has been easing on the Lebanese Eurobonds market.
The BLOM Bond Index (BBI) rose by 1.25% over the week to 93.93 points on account of higher demand on medium and long term bonds.
The BBI therefore outpaced the JP Morgan Emerging Markets’ Bond Index (EMBI) which slid by a weekly 0.16% to 805.33 points.
Significant progress in the US-China trade talks and the attribution of softer US economic data to the recent government shutdown led to lower demand for US treasuries. The yields on the US treasuries maturing in 5 and 10 years rose by 3 basis points (bps) each to reach 2.51% and 2.69%, respectively.
As a result, the 5Y spread and 10Y spread between the yield on the Lebanese Eurobonds and their US couterparts narrowed by 28 bps each to reach 678 bps and 666 bps, respectively.
The 5Y Credit Default Swaps for Lebanon narrowed from near the 900 mark reached back in January to settle at a mid price of 697 this week.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 21/02/2019 | 14/02/2019 | |
| Lebanon | 697 | 688 |
| KSA | 89 | 92 |
| Dubai | 127 | 128 |
| Brazil | 166 | 168 |
| Turkey | 322 | 315 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 21/02/2019 | 14/02/2019 | Change | 21/02/2019 | 14/02/2019 | Change bps |
| 09/03/2020 | 6.375 | 97.466 | 97.25 | 0.22% | 8.95% | 9.12% | -17 |
| 14/04/2020 | 5.8 | 96.368 | 96 | 0.38% | 9.20% | 9.48% | -28 |
| 19/06/2020 | 6.15 | 96.181 | 95.75 | 0.45% | 9.26% | 9.57% | -31 |
| 12/04/2021 | 8.25 | 97.172 | 96.63 | 0.56% | 9.73% | 10.01% | -27 |
| 04/10/2022 | 6.1 | 90.399 | 89.63 | 0.86% | 9.28% | 9.53% | -25 |
| 27/01/2023 | 6 | 89.346 | 88.55 | 0.90% | 9.29% | 9.54% | -25 |
| 22/04/2024 | 6.65 | 88.27 | 87.15 | 1.29% | 9.58% | 9.87% | -29 |
| 04/11/2024 | 6.25 | 86.256 | 84.63 | 1.92% | 9.42% | 9.82% | -40 |
| 03/12/2024 | 7.00 | 88.025 | 87.38 | 0.74% | 9.75% | 9.91% | -15 |
| 26/02/2025 | 6.20 | 85.829 | 84.88 | 1.12% | 9.33% | 9.55% | -22 |
| 12/06/2025 | 6.25 | 86.182 | 84.75 | 1.69% | 9.18% | 9.51% | -33 |
| 28/11/2026 | 6.60 | 85.764 | 84.75 | 1.20% | 9.20% | 9.40% | -20 |
| 23/03/2027 | 6.85 | 85.722 | 84.38 | 1.59% | 9.41% | 9.67% | -26 |
| 29/11/2027 | 6.75 | 84.722 | 83.38 | 1.61% | 9.34% | 9.59% | -25 |
| 03/11/2028 | 6.65 | 83.479 | 82.13 | 1.64% | 9.27% | 9.50% | -24 |
| 26/02/2030 | 6.65 | 81.872 | 80.25 | 2.02% | 9.32% | 9.59% | -27 |
| 22/04/2031 | 7.00 | 81.2 | 80.13 | 1.34% | 9.66% | 9.83% | -17 |
| 23/03/2032 | 7.00 | 81.922 | 80.13 | 2.24% | 9.43% | 9.71% | -28 |
| 02/11/2035 | 7.05 | 81.742 | 79.5 | 2.82% | 9.21% | 9.52% | -31 |
| 23/03/2037 | 7.25 | 81.733 | 79.5 | 2.81% | 9.36% | 9.67% | -30 |