GS Sees Lebanese Eurobonds as Overvalued; Global Yields Hit 18-Year High

The BLOM Bond Index slipped slightly this week while still trading near its highest level since March 2026. Parliament’s passage of an amended Bank Restructuring Law in August removed one key obstacle toward an eventual IMF program and debt restructuring. However, the Financial Regularization and Deposit Recovery Law—commonly referred to as the Gap Law—remains pending. In addition, Israeli strikes on South Lebanon persist, maintaining pressure on the security front. Accordingly, Goldman Sachs warns current valuations look overly optimistic .

Globally, bond yields have surged to crisis-era levels, adding further strain to debt sustainability worldwide.

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