BBI Rose to 6.32 Points on the Week Ending May 16th, 2024

16/05/202409/05/2024 ChangeYear to Date
BLOM Bond Index (BBI)6.325.867.86%4.74%
Weighted Yield          226.72%233.37%-2.85%158.16%
Weighted Spread 22,128 22,792-2.91%152.14%
16/05/202409/05/2024 Change
BBI6.325.867.86%
JP Morgan EMBI865.92857.171.02%
5Y LEB103.65%110.50%-685
10Y LEB101.00%108.40%-740
5Y US4.40%4.47%-7
10Y US4.38%4.45%-7
5Y SPREAD                      9,925                     10,603-678
10Y SPREAD                      9,662                     10,395-733

The BLOM Bond Index (BBI) which is BLOMInvest Bank’s market value-weighted index tracking the performance of the Lebanese government Eurobond’s market (excluding coupon payments), increased throughout the course of the week by 7.86%, to reach 6.32 points by May 16th, 2024. Similarly, JP Morgan EMBI rose by 1.02% to stand at 865.92 on May 16th, 2024 compared to 857.17 on May 9th, 2024.

Moreover, the yield on the five-year (5Y) and ten year (10Y) Lebanese Eurobonds fell respectively by 685 and 740 bps to stand at 103.65% and 101% by the week ending May 16th, 2024 compared to the previous week.

US yield curve shifted lower over the course of the week as one, five and ten years yield decreased respectively by 2, 7 and 7 bps on May 16th compared to the previous week.

On Wednesday May 17th, 2024, the revealed annual inflation rate in the US dropped from 3.5% in March 2024 to 3.4% in April 2024. Meanwhile, core inflation eased from 3.8% in March and February 2024 to the lowest reading since April 2021 and reached 3.6% annually.

Later on, on Thursday May 16th, several figures regarding jobless claims were revealed by U.S. Department of Labor.

First, the number of people claiming unemployment benefits in the US dropped by 10K and settled at 222K (being third-highest reading this year) on the week ending May 11th, above market expectations of 220K.

Second, US’s continuous jobless claims increased by 13K to reach 1.794 million in the first week ending of May 2024 indicating that unemployed Americans are facing struggles to find new work.

Third, US’s four-week moving average for initial jobless claims that dismisses week-to-week volatility rose by 2,500 reaching its highest level since November 2023 and recorded 217,750 in the week ending May 11th.

Elsewhere, retail sales in the US in April 2024 rose by 3% YOY while building permits dropped by 3% to a seasonally adjusted annual rate of 1.44 million, less than the forecasts of 1.48 million, and being the lowest since December 2022. Moreover, manufacturing production in the US dropped by 0.5% YOY in April 2024 after a 0.6% increase in March 2024.

In turn, the 5Y and 10Y spread between the yield on Lebanese Eurobonds and their US comparable recorded a downturn from 10,603 and 10,395 bps to 9,925 and 9,662 bps respectively by the week ending May 16th, 2024.

16/05/202409/05/2024
KSA4951
Dubai6161
Brazil141139
Turkey267276
 Source: Bloomberg

  

Weekly Change of Lebanese Eurobonds Prices 

 PricesWeeklyYieldsWeekly
Maturity Coupon in %16/05/202409/05/2024Change 16/05/202409/05/2024Change bps
26/02/20256.206.976.497.29%912.14%917.59%-544
12/06/20256.257.146.657.30%525.64%532.01%-637
28/11/20266.606.956.389.02%185.55%192.99%-744
23/03/20276.857.016.448.87%165.48%173.10%-761
29/11/20276.756.956.506.87%140.50%145.42%-492
03/11/20286.656.966.507.17%119.44%125.22%-578
26/02/20306.657.006.507.66%103.62%109.42%-580
22/04/20317.007.006.438.84%103.18%111.28%-810
23/03/20327.006.996.507.54%100.31%107.19%-687
02/11/20357.057.006.438.84%100.20%109.29%-909
23/03/20377.256.966.536.49%102.07%108.64%-657

Source: BLOMInvest Bank

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