Demand for Lebanese TB subscriptions drops 18 percent
The amount of TB purchase subscriptions fell by 18.06 percent on March 15th to LP235.34 billion ($156.11 million), as the amount of maturing TBs dropped 14.15 percent to LP190.21 billion ($126.18 million), thus amounting in a surplus of LP45.13 billion ($29.94 million).
No new investors seem to be entering the treasury bills market, with activity on the secondary market almost non-existent. Most people seem to be waiting for the recent economic reforms to generate concrete outcomes before investing in LP denominated assets.
The trend of rolling-over maturing 2-year bills by banks continued this week, as the share of the 24-M TB rose to 37.3 percent from 30.4 percent of subscriptions. The weight of the 12-M TB fell further this week to 14.5 percent from 19.2 percent, while that of the short-term bills (3-M and 6-M) lost 217 b.p. to reach 48.21 percent of total purchases. There was no interest in the BDL’s LP certificates of deposit this week due to lack of demand. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)