BLOM Bond Index Registers Weekly Gains, While Emerging Markets’ Bonds Index Plunges

The BLOM Bond Index (BBI) registered a 0.99% uptick over the past week to settle at 107.13 points. The BBI outperformed the JP Morgan Emerging Markets’ Bond Index which lost a weekly 0.32% to 672.92 points.

The yield on the Lebanese Eurobonds maturing in 5Y steadied at 5.34%, while that of the 10Y added 2 basis points (bps) to 6.23%. In the U.S, demand on 5Y notes was the same as the previous week, where their yield remained at 1.62%. In contrast, demand for 10Y US notes grew, with their unchanged yield decreasing by 5 bps to2.23%. Accordingly the spread between the yields on the 5Y Lebanese Eurobonds and their US comparable remained at last week’s level, at 372 bps, while the 10Y spread broadened from 393 bps to 400 bps.

Lebanon’s 5Y Credit Default Swaps (CDS) went from last week’s 353-381 bps to 350-383 bps. 5Y CDS quotes of Saudi Arabia widened from 62-67 bps to 60-68 bps, while that of Dubai narrowed from 179-188 bps to 173-188 bps. Turkey’s 5Y CDS steadied at 237-240 bps. Meanwhile, Brazil’s 5Y CDS broadened from 285-288 bps to 329-333 bps.

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