03/11/2016 | 27/10/2016 | Change | Year to Date | ||
BLOM Bond Index (BBI)* | 102.59 | 102.70 | -0.10% | -1.46% | |
Weighted Yield** | 6.56% | 6.51% | 0.79% | 7% | |
Weighted Spread*** | 555 | 546 | 1.65% | 29% |
During the week ending 3rd of November, Lebanese Eurobonds revealed a marginal decline, as the BLOM Bond Index (BBI) fell 0.10% over the week to reach 102.59 points. However, the BBI outperformed the JP Morgan Emerging Markets’ Bond Index which lost a weekly 0.48% to reach 758.63 points.
Lower demand for Lebanese Eurobonds was translated by a rise in the yields of the Lebanese Eurobonds maturing in 5Y and 10Y from 6.33% and 6.90% last week, to 6.40% and 6.97%, respectively.
In contrast, amid uncertainties regarding next week’s US presidential elections, investors continued to shift money into safe haven debts. As such, the yields on the US treasuries maturing in 5 and 10 years dropped from 1.33% and 1.85% last week to 1.26% and 1.82% this week. Hence, the spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable went from 500 bps and 505 bps last week to 514 bps and 515 bps this week, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
0 | 03/11/2016 | 27/10/2016 |
Lebanon | 514 | 513 |
KSA | 134 | 133 |
Dubai | 151 | 148 |
Brazil | 288 | 273 |
Turkey | 265 | 253 |