Demand for Lebanese Eurobonds Remained almost Unchanged over the Past Week

The BLOM Bond Index (BBI) remained relatively stable, decreasing by a slight 0.02% during the week, to 103.85 points. However, the Lebanese Eurobond Market fared better than bonds in emerging markets, as the BBI outperformed the JP Morgan Emerging Markets’ Bond Index that lost 0.77% to 670.50 points.

The yield on the 5Y Lebanese Eurobonds added 1 basis point (bp) to 6.16%, while that of the 10Y steadied at 6.69%.

The yield on the 5Y US treasuries inched up from 1.68% to 1.73%, while that of the 10Y steadied at 2.24%.  Confidence in the US economy, after the interest rate hikes, pushed investors away from the safe haven US bonds.

Consequently, the spread between the yields on the 5Y Lebanese Eurobonds and their US comparable tightened from last week’s 447 bps to 443 bps, while that of the 10Y remained at 445 bps.

5 Year Credit Default Swaps, MENA Region