Demand Strengthened for Lebanese Eurobonds on Tuesday

Demand for medium and long term Lebanese Eurobonds strengthened as the BLOM Bond Index (BBI) increased by 0.15% to 106.81 points with the holidays on the horizon. The yields on the 5Y and 10Y Lebanese Eurobonds downturned by 3 basis points (bps) and 2 bps to respective 5.32% and 6.13%. The demand for medium-term US securities increased at a faster pace, translating to a 4 bps decrease on the 5Y yield on US Treasury Bills to 1.37%. Consequently, the 5Y spread between the yield on the Lebanese Eurobonds and the US comparable slightly broadened by 1 bp to 395 bps. In addition, Lebanon’s 5Y Credit Default Swaps (CDS) widened from of 378-397 bps to 377-401 bps.

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