The Eurobond market witnessed a measured demand across the yield curve advancing mainly from local participants. Interest in sovereign papers maturing in 2003 till 2006 was magnified, thus lifting their prices over the week. On the other hand, Corporates were also subject to upward movement in prices, after remaining relatively idle since the start of the year.
Last week’s long-term 15-year issue was subject to little demand after the government succeeded in selling it entirely to foreign investors, thus reflecting signs of confidence as to the upcoming prospects of the Lebanese economy.
US Treasuries ended an oscillating week by tumbling sharply on Friday and pushing yields to their highest levels since last December, after the government announced that economic growth gained surprising momentum in the first quarter of this year. The Commerce Department reported that US gross domestic product (GDP) grew at a stronger-than-expected 2 percent annual rate in the first three months, up from 1%in the closing quarter of last year. Separately, the Labor Department showed that weekly jobless claims jumped to their highest level in 5 years, while the University of Michigan’s April consumer sentiment index fell to 88.4 from 91.5 in March, casting doubts on continued growth in spending. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)