Positive Momentum in the Lebanese Eurobonds Market on Tuesday

Demand for Lebanese Eurobonds saw positive momentum after the holidays, reflected by the BLOM Bond Index (BBI) that increased 0.28% to settle at 107.01 points. The yields on the 5Y and 10Y Lebanese Eurobonds declined by 6 basis points (bps) and 4 bps to 5.28% and 6.10%, respectively. In turn, due to the increasing demand for Lebanese medium-term notes outpacing that in the US, the spread on the 5Y Lebanese securities and its US equivalent narrowed by 1 bp to 394 bps. In addition, Lebanon’s 5Y Credit Default Swaps (CDS) slightly widened from a previous quote of 374-394bps to 373-396 bps.