Weak Demand for Lebanese Eurobonds a Day Before Eid Al-Adha
Appetite for Lebanese Eurobonds faded on Wednesday, as revealed by the BLOM Bond Index (BBI) that declined by 0.13% to settle at 105.56 points, thus broadening its year-to-date loss to 1.78%. Yields on the 5Y and 10Y Lebanese Eurobonds increased by 4 basis points (bps) and 1 bp to 5.82% and 6.37%, respectively. Demand for medium-term US notes weakened on Wednesday, however at a slower pace than that of its Lebanese counterpart, causing the spread between both maturities to widen by 1 bp to 435 bps. As for the Lebanese 5Y Credit Default Swaps (CDS), they broadened from 393-415 bps to 403-428 bps bps.
| Last | Previous | Change | Y-t-D Change | ||
| BBI | 105.561 | 105.696 | -0.13% | -1.78% | |
| Weighted Yield | 5.78% | 5.74% | 4 | bps | |
| Duration (Years) | 4.97 | 4.97 | |||
| 5Y Bond Yield | 5.82% | 5.78% | 4 | bps | |
| 5Y Spread* | 435 | 434 | 1 | bps | |
| 10Y Bond Yield | 6.37% | 6.36% | 1 | bps | |
| 10Y Spread* | 421 | 422 | -1 | bps | |
*Between Lebanese and U.S notes
| Price | Yield | Yield Change (in bps) | |
| Nov. 2016 | 100.58 | 4.21% | 0 |
| Mar. 2017 | 106 | 4.78% | 16 |
| Oct. 2017 | 100.13 | 4.93% | 13 |
| Jun. 2018 | 100 | 5.15% | 15 |
| Nov. 2018 | 99.75 | 5.24% | 13 |
| Apr. 2019 | 100.75 | 5.27% | 0 |
| May. 2019 | 102.25 | 5.31% | 0 |
| Nov.2019 | 99.75 | 5.52% | 4 |
| Mar. 2020 | 103 | 5.60% | 3 |
| Apr. 2020 | 100.63 | 5.64% | 3 |
| Apr. 2021 | 110.88 | 5.92% | 2 |
| Oct. 2022 | 100.38 | 6.03% | 0 |
| Jan. 2023 | 99.5 | 6.08% | 2 |
| Dec. 2024 | 105.25 | 6.24% | 0 |
| Feb. 2025 | 99.38 | 6.29% | 0 |
| Jun. 2025 | 99.38 | 6.33% | 0 |
| Nov. 2026 | 100.5 | 6.53% | 3 |
| Nov. 2027 | 101.38 | 6.58% | 1 |
| Feb. 2030 | 99.5 | 6.70% | 0 |
