Demand for Eurobonds Weakened for the 4th Session Running
Demand on the Lebanese Eurobonds market declined on Friday for the 4th consecutive session possibly due to the heightening local disturbances on the political front. Accordingly, the BLOM Bond Index (BBI) went down by 0.20% to 106.59 points, broadening its year-to-date loss to 0.82%. While demand for short term Eurobonds substantially dropped, the yields on the 5Y and 10Y Lebanese Eurobonds increased by 5 basis points (bps) and 1 bp to reach respective levels of 5.45% and 6.30%. The 5Y spread between Lebanese Eurobonds and their US counterpart broadened by 11 bps to 401 bps as demand for medium term US notes progressed. The Lebanese 5Y Credit Default Swaps (CDS) slightly broadened from their previous quotes of 403-443 bps to 405-445 bps.
| Last | Previous | Change | Y-t-D Change | ||
| BBI | 106.591 | 106.802 | -0.20% | -0.82% | |
| Weighted Yield | 5.58% | 5.52% | 8 | bps | |
| Duration (Years) | 5.03 | 5.03 | |||
| 5Y Bond Yield | 5.45% | 5.40% | 5 | bps | |
| 5Y Spread* | 401 | 390 | 11 | bps | |
| 10Y Bond Yield | 6.30% | 6.29% | 1 | bps | |
| 10Y Spread* | 425 | 420 | 5 | bps | |
*Between Lebanese and U.S notes
| Price | Yield | Yield Change (in bps) | |
| Nov. 2016 | 100.8 | 4.05% | 4 |
| Mar. 2017 | 106.82 | 4.48% | 19 |
| Oct. 2017 | 100.9 | 4.55% | 10 |
| Jun. 2018 | 101.03 | 4.75% | 15 |
| Nov. 2018 | 100.73 | 4.90% | 14 |
| Apr. 2019 | 101 | 5.19% | 7 |
| Mar. 2020 | 103.63 | 5.46% | -3 |
| Apr. 2020 | 101.13 | 5.52% | 3 |
| Apr. 2021 | 112.25 | 5.68% | 5 |
| Oct. 2022 | 101.25 | 5.88% | 4 |
| Jan. 2023 | 100.4 | 5.93% | 6 |
| Dec. 2024 | 106.25 | 6.11% | 3 |
| Feb. 2025 | 100.38 | 6.15% | 3 |
| Nov. 2026 | 102 | 6.35% | 0 |
| Nov. 2027 | 103 | 6.39% | 0 |
| Feb. 2030 | 101.13 | 6.53% | 4 |
