Lebanon bonds rally to near-5-year high after new government formed

Lebanon’s international bonds rallied more than 1 cent on Monday after the country formed a new government on Saturday, a move intended to bring the country closer to accessing reconstruction funds following a devastating war between Israel and Hezbollah.

Lebanon’s dollar-denominated bonds jumped as much as 1.1 cents to being bid at around 18.3 cents across most maturities, the highest level since March 2020, Tradeweb data showed.

New Prime Minister Nawaf Salam said on Saturday that the 24-member cabinet would prioritize financial reforms, reconstruction and the implementation of a United Nations resolution seen as a cornerstone to stability on the Lebanese border with Israel.