Mixed Demand for Lebanese Eurobonds on Wednesday

The improving appetite for long term Lebanese Eurobonds yesterday was offset by a dropping demand for short term maturities. Thus, the BLOM Bond Index (BBI) barely changed and a posted a marginal 0.01% slip to 105.68 points. Yield on the 5Y Lebanese Eurobonds increased by 3 basis points (bps) to 5.64% while the yield on the 10Y maturities dropped by 5 basis points (bps) to reach 6.47%. Even though demand for U.S. notes fell slightly, the 5Y spread between Lebanese Eurobonds and their US counterpart broadened by 2 bps to 415 bps. The Lebanese 5Y Credit Default Swaps (CDS) tightened from their previous quotes of 388-415 bps to 380-405 bps.

 LastPrevious ChangeY-t-D Change
Weighted Yield5.76%5.72%4 bps 
Duration (Years)5.035.00   
5Y Bond Yield5.64%5.61%3bps 
5Y Spread*4154132bps 
10Y Bond Yield6.47%6.52%-5bps 
10Y Spread*429440-11bps 

*Between Lebanese and U.S notes

 PriceYield Yield Change (in bps)
Nov. 2016100.794.05%0
Mar. 2017106.384.72%31
Oct. 2017100.384.81%26
Jun. 2018100.754.86%15
Nov. 2018100.54.98%13
Apr. 2019100.55.35%-8
Mar. 2020102.755.68%0
Apr. 2020100.55.67%0
Apr. 2021110.755.97%0
Oct. 2022100.386.03%-2
Jan. 202399.636.06%-2
Dec. 2024105.56.21%-3
Feb. 202599.56.27%4
Nov. 2026100.56.53%-6
Nov. 2027101.256.60%6
Feb. 20301006.65%0





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