Improved Demand for Lebanese Eurobonds on Wednesday
Following Tuesday’s poor demand for Lebanese Eurobonds, appetite for Lebanese sovereign debt dominated in foreign currency slightly recovered yesterday. Accordingly, the BLOM Bond Index (BBI) increased by 0.04% to 105.38 points, narrowing its year-to-date loss to 1.95%. Yields on the 5Y and 10Y Lebanese Eurobonds dropped by 4 basis points (bps) and 3 bps to 5.84% and 6.37%, respectively. As demand for medium-term US notes stagnated on Wednesday, the spread between the 5Y Lebanese notes and their U.S. counterpart narrowed by 4 basis points (bps) to 447 bps. As for the Lebanese 5Y Credit Default Swaps (CDS), they remained at their previous quotes of 403-426 bps.
| Last | Previous | Change | Y-t-D Change | ||
| BBI | 105.375 | 105.331 | 0.04% | -1.95% | |
| Weighted Yield | 5.81% | 5.82% | -1 | bps | |
| Duration (Years) | 4.95 | 4.95 | |||
| 5Y Bond Yield | 5.84% | 5.88% | -4 | bps | |
| 5Y Spread* | 447 | 451 | -4 | bps | |
| 10Y Bond Yield | 6.37% | 6.40% | -3 | bps | |
| 10Y Spread* | 431 | 435 | -4 | bps | |
*Between Lebanese and U.S notes
| Price | Yield | Yield Change (in bps) | |
| Nov. 2016 | 100.57 | 4.21% | 0 |
| Mar. 2017 | 106 | 4.73% | -1 |
| Oct. 2017 | 100 | 5.00% | 0 |
| Jun. 2018 | 100 | 5.15% | 0 |
| Nov. 2018 | 100.13 | 5.10% | -5 |
| Apr. 2019 | 100.25 | 5.42% | 8 |
| May. 2019 | 101.75 | 5.46% | 0 |
| Nov.2019 | 99.75 | 5.52% | -7 |
| Mar. 2020 | 102.5 | 5.73% | 6 |
| Apr. 2020 | 100.13 | 5.77% | 3 |
| Apr. 2021 | 110.75 | 5.94% | -5 |
| Oct. 2022 | 100 | 6.10% | 0 |
| Jan. 2023 | 99.25 | 6.13% | 0 |
| Dec. 2024 | 105 | 6.27% | -4 |
| Feb. 2025 | 99.38 | 6.29% | -4 |
| Jun. 2025 | 99.38 | 6.33% | -4 |
| Nov. 2026 | 100.25 | 6.57% | 2 |
| Nov. 2027 | 101 | 6.63% | 3 |
| Feb. 2030 | 99.25 | 6.73% | -1 |
