Treasury Yields Rise on the back of Fed’s Meeting Minutes
The BLOM Bond Index (BBI) declined by 1.46% during the past 2 weeks to settle at 104.03 points this week. Moreover, the index was outperformed the JP Morgan Emerging Markets’ Bond Index (EMBI), which registered a 0.96% downtick to 779.11 points in the past 2 weeks.
The yields on the Lebanese Eurobonds maturing in 5 and 10 years rose to 6.25% and 6.79% from 5.80% and 6.63%, respectively, on June 22.
In the US, yields on the 5 year and 10 year treasuries rose from 1.76% and 2.15%, on June 22, to 1.94% and 2.37%, this week. The rise in yields can be attributed to Federal Reserve’s June meeting minutes, which showed that the U.S. central bank wanted to start reducing its Treasury bonds portfolio by the end of August.
The 5 year spread broadened by 27 bps to 431 bps, while the 10 year spread contracted by 6 bps to stand at 442 bps.
5 Year Credit Default Swaps, Mid-Prices (in basis points)
| 06/07/2017 | 22/06/2017 | |
| Lebanon | 449 | 403 |
| KSA | 112 | 109 |
| Dubai | 133 | 130 |
| Brazil | 246 | 243 |
| Turkey | 207 | 189 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 06/07/2017 | 22/06/2017 | Change | 06/07/2017 | 22/06/2017 | Change bps |
| 12/06/2018 | 5.15 | 100.2 | 100.75 | -0.55% | 4.92% | 4.35% | 57 |
| 12/11/2018 | 5.15 | 100.13 | 101 | -0.86% | 5.04% | 4.40% | 65 |
| 23/04/2019 | 5.5 | 100.13 | 101 | -0.86% | 5.42% | 4.92% | 50 |
| 20/05/2019 | 6 | 101 | 101.75 | -0.74% | 5.43% | 5.03% | 40 |
| 28/11/2019 | 5.45 | 99.88 | 100.75 | -0.86% | 5.50% | 5.12% | 38 |
| 09/03/2020 | 6.375 | 101.25 | 102.38 | -1.10% | 5.86% | 5.42% | 44 |
| 14/04/2020 | 5.8 | 99.63 | 100.88 | -1.24% | 5.94% | 5.45% | 49 |
| 19/06/2020 | 6.15 | 100.38 | 101.75 | -1.35% | 6.01% | 5.51% | 50 |
| 12/04/2021 | 8.25 | 107 | 108.88 | -1.73% | 6.14% | 5.62% | 51 |
| 04/10/2022 | 6.1 | 99.25 | 101.13 | -1.86% | 6.27% | 5.85% | 42 |
| 27/01/2023 | 6 | 98.25 | 100.38 | -2.12% | 6.38% | 5.92% | 46 |
| 22/04/2024 | 6.65 | 100.63 | 102 | -1.34% | 6.53% | 6.28% | 25 |
| 04/11/2024 | 6.25 | 98.25 | 99.63 | -1.39% | 6.55% | 6.31% | 24 |
| 03/12/2024 | 7.00 | 102.5 | 104 | -1.44% | 6.57% | 6.32% | 25 |
| 26/02/2025 | 6.20 | 97.75 | 99.13 | -1.39% | 6.58% | 6.34% | 23 |
| 12/06/2025 | 6.25 | 97.88 | 99.25 | -1.38% | 6.60% | 6.37% | 23 |
| 28/11/2026 | 6.60 | 99 | 100.75 | -1.74% | 6.74% | 6.49% | 25 |
| 23/03/2027 | 6.85 | 99.75 | 101.63 | -1.85% | 6.88% | 6.62% | 27 |
| 29/11/2027 | 6.75 | 98.88 | 100.75 | -1.86% | 6.90% | 6.65% | 25 |
| 03/11/2028 | 6.65 | 97.75 | 99.38 | -1.64% | 6.94% | 6.73% | 21 |
| 26/02/2030 | 6.65 | 97.5 | 99.13 | -1.64% | 6.95% | 6.75% | 20 |
| 22/04/2031 | 7.00 | 99.75 | 101 | -1.24% | 7.03% | 6.89% | 14 |
| 23/03/2032 | 7.00 | 99.5 | 101 | -1.49% | 7.05% | 6.89% | 16 |
| 02/11/2035 | 7.05 | 99.63 | 100.25 | -0.62% | 7.08% | 7.02% | 6 |
| 23/03/2037 | 7.25 | 99 | 101.25 | -2.22% | 7.35% | 7.13% | 22 |
