US Bond Yields Slightly Down amid Surge of Corona Virus Cases
| 29/07/2021 | 15/07/2021 | Change | Year to Date | |
| BLOM Bond Index (BBI) | 12.62 | 13.03 | -3.15% | -10.97% |
| Weighted Yield | 88.54% | 85.51% | 3.54% | 5.68% |
| Weighted Spread | 8,849 | 8,547 | 3.54% | 6.90%
|
| 29/07/2021 | 15/07/2021 | Change | |
| BBI | 12.62 | 13.03 | -3.15% |
| JP Morgan EMBI | 928.66 | 928.72 | -0.01% |
| 5Y LEB | 78.00% | 74.90% | 310 |
| 10Y LEB | 59.25% | 57.75% | 150 |
| 5Y US | 0.73% | 0.78% | -5 |
| 10Y US | 1.28% | 1.31% | -3 |
| 5Y SPREAD | 7,727 | 7,412 | 315 |
| 10Y SPREAD | 5,797 | 5,644 | 153 |
This week, Najib Mikati has been named by the parlement to form a new government. This event has somehow spread some positivity on the market. Hoewever, the formation of the new government will not be easy at all amid the huge political conflict between Lebanese parties.
As such, the BLOM Bond Index (BBI) which is BLOMInvest Bank’s market value-weighted index tracking the performance of the Lebanese government Eurobonds’ market (excluding coupon payments), decreased by 3.15% to stand at 12.62 points by the week ending July 29, 2021 compared to the week of July 15, 2021. Meanwhile, the JP Morgan EMBI slightly decreased from 928.72 to 928.66 during the period.
In addition, the yields on the 5 year (5Y) and 10 year (10Y) Lebanese Eurobonds increased by 310 and 150 basis points (bps) to end the period at 78% and 59.25%, respectively.
In the US, the yields on 5 year and 10 year US treasuries recorded a slight decrease from the week ending July 15, 2021 from 0.78% and 1.31% to 0.73% and 1.28 %,respectively, by the end of week 29 July, 2021. In details, the decrease of US yields was the result of the huge increase of corona virus cases globally and in the US, wish raised more concerns about prospects for economic growth.
In turn, the 5Y and 10Y spread between the yield on Lebanese Eurobonds and their US comparable widenned from 7,412 bps and 5,644 bps to 7,727 bps and 5,797 respectively.
| 29/07/2021 | 15/07/2021 | |
| Lebanon | . | . |
| KSA | 56 | 56 |
| Dubai | 92 | 88 |
| Brazil | 172 | 175 |
| Turkey | 382 | 382 |
Weekly Change of Lebanese Eurobonds Prices
| Prices | Weekly | Yields | Weekly | ||||
| Maturity | Coupon in % | 29/07/2021 | 15/07/2021 | Change | 29/07/2021 | 15/07/2021 | Change bps |
| 27/01/2023 | 6.00 | 12.28 | 12.64 | -2.83% | 232.59% | 220.12% | 1246 |
| 22/04/2024 | 6.65 | 12.07 | 12.67 | -4.81% | 123.29% | 118.03% | 526 |
| 04/11/2024 | 6.25 | 12.14 | 12.54 | -3.13% | 103.01% | 100.02% | 299 |
| 03/12/2024 | 7.00 | 12.05 | 12.61 | -4.39% | 105.05% | 101.29% | 376 |
| 26/02/2025 | 6.20 | 12.11 | 12.57 | -3.67% | 95.71% | 92.53% | 318 |
| 12/06/2025 | 6.25 | 12.53 | 12.77 | -1.86% | 87.96% | 86.34% | 162 |
| 28/11/2026 | 6.60 | 12.07 | 12.50 | -3.46% | 73.63% | 71.66% | 197 |
| 23/03/2027 | 6.85 | 12.15 | 12.53 | -3.07% | 72.23% | 70.38% | 185 |
| 29/11/2027 | 6.75 | 12.10 | 12.57 | -3.79% | 67.73% | 65.76% | 197 |
| 03/11/2028 | 6.65 | 12.08 | 12.56 | -3.85% | 63.16% | 61.22% | 193 |
| 26/02/2030 | 6.65 | 12.21 | 12.47 | -2.09% | 59.25% | 58.10% | 115 |
| 22/04/2031 | 7.00 | 12.22 | 12.61 | -3.05% | 59.44% | 57.84% | 160 |
| 23/03/2032 | 7.00 | 12.11 | 12.44 | -2.68% | 59.09% | 57.60% | 148 |
| 02/11/2035 | 7.05 | 12.23 | 12.58 | -2.79% | 57.43% | 55.91% | 152 |
| 23/03/2037 | 7.25 | 12.68 | 13.13 | -3.43% | 56.88% | 54.94% | 194 |
Source: BLOMInvest Bank
