Demand for Short Term Lebanese Eurobonds Weakened on Friday
Demand for short term Lebanese Eurobonds declined during the last session of the week, offsetting the improved appetite for long term notes. This caused the BLOM Bond Index (BBI) to drop by 0.06% to 104.86 points, broadening its year-to-date loss to 2.43%. Yield on the 10Y Lebanese Eurobonds fell by 3 basis points (bps) to 6.45% while that of the 5Y remained at its Thursday’s level of %5.98. In the US, demand for medium term maturities slightly progressed leading the 5Y spread between the Lebanese Eurobonds and their U.S counterpart to widen by 1 bp to 446 bps. As for the Lebanese 5Y Credit Default Swaps (CDS), they narrowed from their previous quotes of 398-420 bps to 392-416 bps.
| Last | Previous | Change | Y-t-D Change | ||
| BBI | 104.862 | 104.927 | -0.062% | -2.43% | |
| Weighted Yield | 5.93% | 5.91% | 2 | bps | |
| Duration (Years) | 4.90 | 4.90 | |||
| 5Y Bond Yield | 5.98% | 5.98% | 0 | bps | |
| 5Y Spread* | 446 | 445 | 1 | bps | |
| 10Y Bond Yield | 6.45% | 6.48% | -3 | bps | |
| 10Y Spread* | 429 | 429 | 0 | bps | |
*Between Lebanese and U.S notes
| Price | Yield | Yield Change (in bps) | |
| Nov. 2016 | 100.39 | 4.35% | 0 |
| Mar. 2017 | 105.38 | 4.94% | 8 |
| Oct. 2017 | 99.75 | 5.13% | 0 |
| Jun. 2018 | 99.75 | 5.25% | 0 |
| Nov. 2018 | 99.38 | 5.37% | 4 |
| Apr. 2019 | 100 | 5.50% | 0 |
| May. 2019 | 101.25 | 5.61% | 0 |
| Nov.2019 | 98.75 | 5.80% | 7 |
| Mar. 2020 | 102 | 5.85% | 0 |
| Apr. 2020 | 99.75 | 5.86% | 0 |
| Apr. 2021 | 110 | 6.07% | 0 |
| Oct. 2022 | 99.63 | 6.17% | 2 |
| Jan. 2023 | 98.88 | 6.19% | 0 |
| Dec. 2024 | 104.5 | 6.34% | 0 |
| Feb. 2025 | 98.88 | 6.36% | -2 |
| Jun. 2025 | 98.88 | 6.41% | -2 |
| Nov. 2026 | 100 | 6.60% | 2 |
| Nov. 2027 | 101 | 6.63% | -1 |
| Feb. 2030 | 98.63 | 6.80% | 4 |
