Demand For Lebanese Eurobonds Weakened Yesterday

Demand for long term Lebanese Eurobonds fell on Tuesday causing the BLOM Bond Index (BBI) to drop by 0.07% to 107.65 points. Yield on the 10Y Lebanese Eurobonds edged up by 2 basis points (bps) to settle at 5.96% while that of the 5Y steadied at 5.14%. In the US front, the 5Y U.S notes saw a downturn in demand illustrated by the 4 bps increase on its yield to 1.61%. Consequently, the yield on the 5Y Lebanese Eurobonds and its US counterpart tightened by 4 bps to 353 bps. Meanwhile, Lebanon’s 5Y Credit Default Swaps (CDS) narrowed significantly from a previous quote of 369-395 bps to 352-375 bps. This might have been due to positive political talks that took place yesterday between two major parties, signaling a possible agreement for electing a new president.