This week, Lebanon looked for divine intervention to find out a way out of the country’s crises. Moreover, the Russian delegation in Lebanon has offered to resolve the problems of Lebanon in terms of food and electricity supply. In addition, fuel shortage remained the same this week even with the new pricing list. As for the Eurobonds market, it continues to be stagnant as is the political landscape in the country.
As such, the BLOM Bond Index (BBI) which is BLOMInvest Bank’s market value-weighted index tracking the performance of the Lebanese government Eurobonds’ market (excluding coupon payments), decreased by 2.09% to stand at 13.28 points by the week ending July 01, 2021 compared to the week of June 24, 2021. Meanwhile, the JP Morgan EMBI slightly progressed from 924.05 to 924.11 during the period.
In addition, the yields on the 5 year (5Y) and 10 year (10Y) Lebanese Eurobonds increased by 50 basis points (bps) and 13 basis points (bps) to end the period at 74.50% and 56.91%, respectively.
In the US, the yields on 5 year and 10 year US treasuries, recorderd a slight decrease from the week ending of 24 June 2021 from 0.90% and 1.49% to end of the of week of 01 July, 2021 to 0.89% and 1.48%, respectively. In fact, the US treasury market moved as weekly jobless claims were lower than expected this week. In turn, investors are keeping a close eye on the revealed inflation data and jobless claims in order to anticipate any tightening policy action that will be made by the Federal reserve in the upcoming period.
As such, the 5Y and 10Y spread between the yield on Lebanese Eurobonds and their US comparable went up from the week of 24 June, 2021 from 7,310 bps and 5,529 bps to 7,361, bps and 5,543 bps, respectively.
| 01/07/2021 | 24/06/2021 | |
| Lebanon | . | . |
| KSA | 54 | 55 |
| Dubai | 86 | 88 |
| Brazil | 167 | 160 |
| Turkey | 386 | 380 |
| Source: Bloomberg | ||
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 07/01/2021 | 24/06/2021 | Change | 07/01/2021 | 24/06/2021 | Change bps |
| 27/01/2023 | 6.00 | 12.80 | 13.01 | -1.61% | 210.91% | 205.25% | 566 |
| 22/04/2024 | 6.65 | 12.80 | 13.06 | -2.01% | 115.88% | 113.74% | 214 |
| 04/11/2024 | 6.25 | 12.68 | 12.98 | -2.32% | 98.39% | 96.52% | 187 |
| 03/12/2024 | 7.00 | 12.73 | 12.81 | -0.60% | 99.88% | 99.14% | 74 |
| 26/02/2025 | 6.20 | 12.86 | 13.23 | -2.74% | 90.30% | 88.32% | 198 |
| 12/06/2025 | 6.25 | 13.06 | 13.37 | -2.33% | 84.59% | 83.06% | 152 |
| 28/11/2026 | 6.60 | 13.00 | 13.00 | 0.00% | 69.57% | 69.47% | 10 |
| 23/03/2027 | 6.85 | 12.83 | 13.04 | -1.59% | 68.95% | 68.07% | 89 |
| 29/11/2027 | 6.75 | 12.71 | 12.96 | -1.96% | 65.15% | 64.18% | 97 |
| 03/11/2028 | 6.65 | 12.81 | 13.04 | -1.75% | 60.25% | 59.42% | 83 |
| 26/02/2030 | 6.65 | 12.59 | 13.03 | -3.41% | 57.51% | 55.89% | 162 |
| 22/04/2031 | 7.00 | 12.76 | 12.80 | -0.32% | 57.24% | 57.08% | 16 |
| 23/03/2032 | 7.00 | 12.75 | 13.04 | -2.22% | 56.30% | 55.18% | 112 |
| 02/11/2035 | 7.05 | 12.80 | 13.00 | -1.57% | 55.03% | 54.23% | 80 |
| 23/03/2037 | 7.25 | 13.20 | 14.10 | -6.41% | 54.66% | 51.27% | 339 |
Source: BLOMInvest Bank