| 04/12/2014 | 26/11/2014 | Change | Year to Date | ||
| BLOM Bond Index (BBI)* | 108.528 | 108.474 | 0.05% | 2.73% | |
| Weighted Yield** | 5.08% | 5.11% | -2 | 6 | |
| Weighted Spread*** | 359 | 365 | -6 | -71 |
Lebanon’s Eurobonds showed a minor progress for the second week in a row, where the BLOM Bond Index (BBI) increased slightly by 0.05%, to settle at 108.53 points, with a 2.73% gain since year start. The 5Y yield on the Lebanese Eurobonds gained 1 basis point (bp) to 5.12%, while that of 10Y steadied at 6.12%.
As the strengthening economic recovery in the U.S. drove up yields on treasuries and as a stock-market boom in China pulled all the funds, demand on emerging market bonds diminished. This pushed the JP Morgan Emerging Countries’ bond index down by 0.83% to 676.48 points.
In the U.S, demand for treasuries faded as economists predict that employment growth would progress in December. Hence, 5Y and 10Y yields added 3 bps and 1 bp to 1.59% and 2.25%, respectively. Correspondingly, the 5Y and 10Y spreads between the Lebanese Eurobonds and their U.S benchmark narrowed by 2 bps and 1 bp to 353 bps and 387 bps, respectively.
In Lebanon, the 5Y CDS was almost stable going from 351-381 bps to 350-380 bps this week. Meanwhile the 5Y CDS of Dubai and Saudi Arabia went up from 171-178 bps and 56-66 bps to 175-185 bps and 65-75 bps, respectively. Internationally, the 5Y CDS of Turkey dropped from 165-169 bps to 156-159 bps, while that of Brazil stood at 156-159 bps compared to last week’s quote of 153-155 bps.