Weakening Demand for US Bonds Affected Lebanese Eurobonds Negatively

Poor demand for US Treasuries has affected the passive outlook for Lebanese Eurobonds on Wednesday.  The BLOM Bond Index (BBI) slightly down ticked by 0.03% to settle at 107.93 points. The yield on the 10Y Lebanese Eurobonds increased by 1 basis point (bp) to 5.92%, while that of the 5Y notes remained at 5.14%. With the weakening demand for mid-term US notes, the spread between the yields on the 5Y Lebanese Eurobonds and its US comparable tightened by 4 bps to 371 bps. Lebanon’s 5Y Credit Default Swaps (CDS) significantly narrowed from a previous quote of 371-393 bps to 365-388 bps.

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