Eurobonds in New Rally, Snub Barack Peace Talks

Lebanon’s bond market is showing signs of renewed investor confidence. In the week ending July 3, the BLOM Bond Index jumped 4.76%, driven by easing regional tensions after the Iran-Israel ceasefire. The rally comes even as Hezbollah pushes back against U.S.-backed disarmament proposals ahead of envoy Tom Barrack’s anticipated visit. Meanwhile, U.S. Treasury yields edged higher, as strong job data reinforced the Federal Reserve’s cautious stance on monetary easing. Read the full report below for more on trade developments and the implications of the “One Big Beautiful Bill” on U.S. bonds.

On the economic front, Finance Minister Yassine Jaber said that the banking sector restructuring law will be approved “before the end of the current month.” The statement followed his meeting with Central
Bank Governor Karim Souaid, during which several key financial issues were discussed. Although Cabinet had already approved the draft law on April 12—a critical condition for securing IMF support— providing a concrete timeline helped reassure investors, contributing to recent Eurobond gains.
When bond prices go up, yields go down. Consequently, the yield on 5-year bonds fell by 240 basis points to 94.6%, and the yield on 10- year bonds declined by 190 basis points to 64.1% this week.

Stock Market Indices

Credit Libanais’ Economic Research Unit tracks the day-to-day performance of the Beirut Stock Exchange (BSE) through its market-cap weighted stock market indices, namely the Credit Libanais Aggregate Stock Index (CLASI), the Financial Sector Stock Index (CLFI), and Construction Sector Stock Index (CLCI).
To provide a more significant benchmarking tool, the CLFI was designed to specifically monitor the performance of listed banking stocks, and more particularly common shares and global depository receipts (GDRs) issued by Lebanese banks, whereas the CLCI was created to gauge the price evolution of real estate and construction stocks. The CLASI is a combination of both, reflecting the overall activity of the Beirut Bourse