Demand for medium and Long-term Eurobonds Plummeted

Due to the escalation of the security developments yesterday, demand for medium and long-term Lebanese Eurobonds plummeted causing a 0.40% decline in the BLOM Bond Index (BBI) to 106.97 points. The 5Y and 10Y yields gained 9 basis points (bps) and 7 bps to 5.21% and 6.23%, respectively. The 5Y spread against the US Treasury benchmark broadened by 18 bps to 396 bps, as demand for US treasuries improved. As for the 5Y CDS quote, it stood at 370-400 bps, compared to a previous quote of 372-400 bps.