Lower Demand on the Lebanese Eurobonds’ Market

 During the week ending 3^rd of November, Lebanese Eurobonds revealed a marginal decline, as the BLOM Bond Index (BBI) fell 0.10% over the week to reach 102.59 points. However, the BBI outperformed the JP Morgan Emerging Markets’ Bond Index which lost a weekly 0.48% to reach 758.63 points.

Lower demand for Lebanese Eurobonds was translated by a rise in the yields of the Lebanese Eurobonds maturing in 5Y and 10Y from 6.33% and 6.90% last week, to 6.40% and 6.97%, respectively.

In contrast, amid uncertainties regarding next week’s US presidential elections, investors continued to shift money into safe haven debts. As such, the yields on the US treasuries maturing in 5 and 10 years dropped from 1.33% and 1.85% last week to 1.26% and 1.82% this week. Hence, the spread between the yields on the 5 Year and 10 Year Lebanese Eurobonds and their US comparable went from 500 bps and 505 bps last week to 514 bps and 515 bps this week, respectively.

5 Year Credit Default Swaps, Mid-Prices (in basis points)