BBI and JP Morgan EMBI Display Subdued Performances over the Past Week
The BLOM Bond Index (BBI) declined by a weekly 0.04% to settle at 105.95 points this week. The performance of emerging bonds was also subdued with the JP Morgan Emerging Markets’ Bond Index (EMBI) barely registering a 0.01% uptick to 790.57 points.
The yield on the Lebanese Eurobonds maturing in 5 years stabilized at 5.69% while the yield on the Lebanese Eurobonds maturing in ten years dropped from 6.58% last week to 6.56% this week.
In the US, the yield on the 5 year treasuries edged up from last week’s 1.75% to 1.76% while the yield on the 10 year treasuries slid from 2.19% to 2.16%. In fact, it’s the US treasuries maturing in two years that showed the highest sensitivity to the Federal Reserve’s interest rate hike on Wednesday with their yield rising to the highest since mid-March and reaching 1.38%.
The 5 year spread between the Lebanese Eurobonds’ yields and the US treasuries narrowed from 394 bps to 393 bps while the 10 year spread merely widened from 439 bps to 440 bps , respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 15/06/2017 | 08/06/2017 | |
| Lebanon | 381 | 370 |
| KSA | 100 | 104 |
| Dubai | 120 | 118 |
| Brazil | 236 | 237 |
| Turkey | 186 | 196 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 15/06/2017 | 08/06/2017 | Change | 15/06/2017 | 08/06/2017 | Change bps |
| 12/06/2018 | 5.15 | 100.75 | 100.75 | 0.00% | 4.37% | 4.38% | -1 |
| 12/11/2018 | 5.15 | 101 | 100.9 | 0.10% | 4.41% | 4.49% | -8 |
| 23/04/2019 | 5.5 | 101.13 | 101.2 | -0.07% | 4.85% | 4.82% | 3 |
| 20/05/2019 | 6 | 102 | 102.13 | -0.13% | 4.90% | 4.84% | 6 |
| 28/11/2019 | 5.45 | 101 | 101 | 0.00% | 5.01% | 5.01% | 0 |
| 09/03/2020 | 6.375 | 102.75 | 102.75 | 0.00% | 5.28% | 5.28% | -1 |
| 14/04/2020 | 5.8 | 101.25 | 101.15 | 0.10% | 5.32% | 5.36% | -4 |
| 19/06/2020 | 6.15 | 102.13 | 102.1 | 0.03% | 5.37% | 5.39% | -1 |
| 12/04/2021 | 8.25 | 109.25 | 109.35 | -0.09% | 5.53% | 5.51% | 2 |
| 04/10/2022 | 6.1 | 101.63 | 101.63 | 0.00% | 5.74% | 5.74% | 0 |
| 27/01/2023 | 6 | 100.5 | 100.88 | -0.38% | 5.89% | 5.81% | 8 |
| 22/04/2024 | 6.65 | 102.38 | 102.5 | -0.12% | 6.22% | 6.20% | 2 |
| 04/11/2024 | 6.25 | 100 | 100.13 | -0.13% | 6.25% | 6.23% | 2 |
| 03/12/2024 | 7.00 | 104.38 | 104.5 | -0.11% | 6.26% | 6.24% | 2 |
| 26/02/2025 | 6.20 | 99.5 | 99.63 | -0.13% | 6.28% | 6.26% | 2 |
| 12/06/2025 | 6.25 | 99.63 | 99.63 | 0.00% | 6.31% | 6.31% | 0 |
| 28/11/2026 | 6.60 | 101.25 | 101.5 | -0.25% | 6.42% | 6.39% | 3 |
| 23/03/2027 | 6.85 | 102.13 | 102 | 0.13% | 6.55% | 6.57% | -2 |
| 29/11/2027 | 6.75 | 101.25 | 101.13 | 0.12% | 6.58% | 6.60% | -2 |
| 03/11/2028 | 6.65 | 100 | 100 | 0.00% | 6.65% | 6.65% | 0 |
| 26/02/2030 | 6.65 | 99.63 | 99.63 | 0.00% | 6.69% | 6.69% | 0 |
| 22/04/2031 | 7.00 | 101.5 | 101.5 | 0.00% | 6.83% | 6.83% | 0 |
| 23/03/2032 | 7.00 | 101.5 | 101.5 | 0.00% | 6.84% | 6.84% | 0 |
| 02/11/2035 | 7.05 | 100.5 | 100.5 | 0.00% | 7.00% | 7.00% | 0 |
| 23/03/2037 | 7.25 | 101.75 | 101.75 | 0.00% | 7.08% | 7.08% | 0 |
