Unlike Demand for US Treasuries, Demand for Lebanese Eurobonds was Down this Past Week

Demand for the Lebanese Eurobonds fell over the past week, as reflected by the BLOM Bond Index (BBI) which lost 0.06% to reach 103.86 points.

The BBI was outperformed by the JP Morgan Emerging Markets’ Bond Index which gained a weekly 1.52% to 730.84 points.

Demand for Lebanese Eurobonds maturing in 5 years declined over the past week with the 5 year yield rising from 6.11% to 6.13% and with the 10 Year Yield rising from 6.71% to 6.73%.

With no strong hint at a US interest rate hike, demand for safe haven assets was more pronounced over the past week. The 5Y and 10Y yields for US treasuries dropped from last week’s 1.36% and 1.81% to 1.23% and 1.71%, respectively.

Therefore, the spread between the yields on the 5Y and 10Y Lebanese Eurobonds and their US comparable broadened from 475 bps and 490 bps to 490 bps and 502 bps, respectively.

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