| 17/02/2022 | 10/02/2022 | Change | Year to Date | |
| 12.76 | 12.54 | 1.74% | 16.42% | |
| Weighted Yield | 80.81% | 81.49% | -0.83% | -7.98% |
| Weighted Spread | 8,010 | 8,069 | -0.73% | -8.72% |
| 17/02/2022 | 10/02/2022 | Change | |
| BBI | 12.76 | 12.54 | 1.74% |
| 5Y LEB | 76.30% | 77.50% | -120 |
| 10Y LEB | 60.00% | 60.20% | -20 |
| 5Y US | 1.85% | 1.96% | -11 |
| 10Y US | 1.97% | 2.03% | -6 |
| 5Y SPREAD | 7,445 | 7,554 | -109 |
| 10Y SPREAD | 5,803 | 5,817 | -14 |
Lebanon cannot be far from what is happening outside the borders, as the negotiation between Iran and west countries are moving forward in Vienna and an agreement could be reached before the end of this month. Of course, a more stable region can help Lebanon to minimize political conflicts between parties in the government and focus only on the economy. Adding to that, the indirect negotiations between Lebanon and Israel concerning the sea borders will resume next month as the Americans are putting some pressure on the Lebanese authorities to make some sacrifices in order to benefits from the gas and oil that could be found in Lebanese sea waters.
This week, 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), rose by 1.74% to stand at 12.76 points by the week ending February 17, 2022 compared to the week of February 10, 2022.
In addition, the yield on the 5 years (5Y) and 10 years (10Y) Lebanese Eurobonds dropped by 120 and 20 basis points (bps), respectively, to end the week of February 10, 2022 at 76.30% and 60%.
In the US, the yields on 5-year treasuries and 10-year US treasuries, recorded at decrease from 1.96% and 2.03% to 1.85% and 1.97% by the week ending February 17, 2022.
The geopolitical tensions between Russia and the Ukraine are certainly affecting the global economies. As such, gold prices reached 1,898$ by the end of this week, as the inflation rate has hit hard globally, and especially in the US. The Fed already knows that now it’s the right time to fight inflation in order to maintain the dollar at a stable rate, and maintain some certain economic stability. A tighter monetary policy is mandatory now to ease consumption and control the inflation rate.
In turn, the 5Y and 10Y spread between the yield on Lebanese Eurobonds and their US comparable recorded a drop from 7,554 bps and 5,817to 7,445 bps and 5,803 bps, respectively.
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 17/02/2022 | 10/02/2022 | Change | 17/02/2022 | 10/02/2022 | Change bps |
| 22/04/2024 | 6.65 | 12.37 | 12.17 | 1.61% | 151.30% | 151.39% | -9 |
| 04/11/2024 | 6.25 | 12.32 | 12.07 | 2.08% | 120.58% | 121.30% | -71 |
| 03/12/2024 | 7.00 | 12.00 | 12.00 | 0.00% | 122.77% | 122.06% | 71 |
| 26/02/2025 | 6.20 | 12.29 | 12.10 | 1.51% | 109.86% | 110.12% | -26 |
| 12/06/2025 | 6.25 | 12.52 | 12.37 | 1.23% | 99.69% | 100.00% | -30 |
| 28/11/2026 | 6.60 | 12.20 | 12.00 | 1.63% | 78.26% | 78.90% | -64 |
| 23/03/2027 | 6.85 | 12.14 | 11.94 | 1.70% | 76.79% | 77.44% | -64 |
| 29/11/2027 | 6.75 | 12.29 | 12.05 | 2.01% | 70.14% | 71.00% | -86 |
| 03/11/2028 | 6.65 | 12.32 | 12.07 | 2.02% | 64.44% | 65.28% | -84 |
| 26/02/2030 | 6.65 | 12.50 | 12.50 | 0.00% | 59.55% | 59.45% | 11 |
| 22/04/2031 | 7.00 | 12.00 | 11.73 | 2.28% | 61.15% | 62.27% | -113 |
| 23/03/2032 | 7.00 | 12.05 | 12.05 | 0.06% | 59.91% | 59.87% | 3 |
| 02/11/2035 | 7.05 | 12.56 | 12.04 | 4.31% | 56.12% | 58.40% | -228 |
| 23/03/2037 | 7.25 | 12.96 | 12.22 | 6.01% | 55.85% | 59.06% | -321 |
Source: BLOMInvest Bank