Demand for US Treasuries Fluctuates on the back of ECB’s Statement
Demand for Lebanese Eurobonds maturing in 5 and 10 years grew over the past week as yields slipped, respectively, from 5.74% and 6.63% in the past week to 5.69% and 6.58% this week.The BLOM Bond Index (BBI) rose by a weekly 0.35% to settle at 105.99 points this week. The Lebanese index lagged behind the JP Morgan Emerging Markets’ Bond Index (EMBI), which recorded a weekly 0.38% increase to 790.5 points.
In the US, demand for treasuries partially recovered in Thursday’s session after witnessing a fall during the week. The drop in demand during the week came as a result of the European Central Bank upgrading its growth forecast for the euro zone as well as higher expectations of an interest rate next week.
Yields on 5 year and 10 year treasuries merely dropped from 1.76% and 2.21%to 1.75% and 2.19%, respectively, this week.
The 5 year and 10 year spread between the Lebanese Eurobonds’ yields and the US treasuries narrowed from 398 bps and 442 bps to 394 bps and 439 bps, respectively.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 08/06/2017 | 01/06/2017 | |
| Lebanon | 370 | 383 |
| KSA | 104 | 89 |
| Dubai | 118 | 106 |
| Brazil | 237 | 237 |
| Turkey | 196 | 196 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 08/06/2017 | 01/06/2017 | Change | 08/06/2017 | 01/06/2017 | Change bps |
| 12/06/2018 | 5.15 | 100.75 | 100.5 | 0.25% | 4.38% | 4.52% | -13 |
| 12/11/2018 | 5.15 | 100.9 | 100.63 | 0.27% | 4.49% | 4.61% | -12 |
| 23/04/2019 | 5.5 | 101.2 | 100.7 | 0.50% | 4.82% | 4.91% | -9 |
| 20/05/2019 | 6 | 102.13 | 101.63 | 0.49% | 4.84% | 4.92% | -8 |
| 28/11/2019 | 5.45 | 101 | 100.38 | 0.62% | 5.01% | 5.07% | -6 |
| 09/03/2020 | 6.375 | 102.75 | 102.25 | 0.49% | 5.28% | 5.39% | -10 |
| 14/04/2020 | 5.8 | 101.15 | 100.63 | 0.52% | 5.36% | 5.46% | -11 |
| 19/06/2020 | 6.15 | 102.1 | 101.5 | 0.59% | 5.39% | 5.50% | -11 |
| 12/04/2021 | 8.25 | 109.35 | 108.63 | 0.66% | 5.51% | 5.59% | -7 |
| 04/10/2022 | 6.1 | 101.63 | 101.25 | 0.38% | 5.74% | 5.79% | -6 |
| 27/01/2023 | 6 | 100.88 | 100.63 | 0.25% | 5.81% | 5.92% | -11 |
| 22/04/2024 | 6.65 | 102.5 | 102.38 | 0.12% | 6.20% | 6.24% | -5 |
| 04/11/2024 | 6.25 | 100.13 | 99.75 | 0.38% | 6.23% | 6.29% | -7 |
| 03/12/2024 | 7.00 | 104.5 | 104 | 0.48% | 6.24% | 6.30% | -6 |
| 26/02/2025 | 6.20 | 99.63 | 99.13 | 0.50% | 6.26% | 6.30% | -4 |
| 12/06/2025 | 6.25 | 99.63 | 99.25 | 0.38% | 6.31% | 6.33% | -2 |
| 28/11/2026 | 6.60 | 101.5 | 100 | 1.50% | 6.39% | 6.51% | -12 |
| 23/03/2027 | 6.85 | 102 | 101.13 | 0.86% | 6.57% | 6.62% | -5 |
| 29/11/2027 | 6.75 | 101.13 | 100 | 1.13% | 6.60% | 6.67% | -7 |
| 03/11/2028 | 6.65 | 100 | 99.13 | 0.88% | 6.65% | 6.70% | -5 |
| 26/02/2030 | 6.65 | 99.63 | 98.88 | 0.76% | 6.69% | 6.75% | -6 |
| 22/04/2031 | 7.00 | 101.5 | 100.88 | 0.61% | 6.83% | 6.87% | -4 |
| 23/03/2032 | 7.00 | 101.5 | 100.38 | 1.12% | 6.84% | 6.93% | -9 |
| 02/11/2035 | 7.05 | 100.5 | 99 | 1.52% | 7.00% | 7.05% | -5 |
| 23/03/2037 | 7.25 | 101.75 | 100.25 | 1.50% | 7.08% | 7.12% | -3 |
