Improved Demand for Short-Term Lebanese Eurobonds

Demand for short-term Lebanese Eurobonds progressed on Thursday which compensated the weakened demand for long term ones. Accordingly, the BLOM Bond Index (BBI) slightly up ticked by 0.01% to 107.13 points. The yield on the 10Y Lebanese Eurobonds went up by 1 basis pont (bp) to 6.23% while that of the 5Y steadied at 5.34%.  The spread between the yield on the 5Y Lebanese Eurobonds and its US counterpart broadened by 3 bps to 372 bps as the demand for medium-term US notes strengthened. Meanwhile, the Lebanese 5Y Credit Default Swaps (CDS) remained at their previous quotes of 350-383 bps.

 0LastPrevious ChangeY-t-D Change
BBI107.131107.1160.01%-0.31%
Weighted Yield5.47%5.48%-1 bps
Duration (Years)5.075.07
5Y Bond Yield5.34%5.34%0bps
5Y Spread*3723693bps
10Y Bond Yield6.23%6.22%1bps
10Y Spread*4003946bps

*Between Lebanese and U.S notes

 PriceYield Yield Change (in bps)
Nov. 2016100.884.01%1
Mar. 2017107.314.28%2
Oct. 2017101.124.45%0
Jun. 2018101.444.60%0
Nov. 2018101.194.75%0
Apr. 2019101.385.09%0
Mar. 20201045.38%0
Apr. 2020101.635.40%0
Apr. 20211135.55%0
Oct. 2022101.885.77%0
Jan. 20231015.83%0
Dec. 2024106.886.02%0
Feb. 2025100.756.09%0
Nov. 2026102.756.26%0
Nov. 2027103.756.31%0
Feb. 2030101.756.46%-3

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