Lebanon Eurobonds Fall amid War and Fiscal Stress; US Yields Jump on Treasury Buyback Shortfall

Lebanese Eurobonds slipped this week as fiscal strains and escalating conflict weighed on investor confidence, with the BLOM Bond Index down 0.3% to 29.57 points. Rising deficits, social pressures, and heightened security risks continue to undermine debt sustainability, even as bonds trade near recent highs. Meanwhile, 10-year U.S. Treasury yields surged to their highest since October 2023, driven by oil price shocks and lighter treasury buybacks, with markets bracing for CPI data and a possible Fed rate hike in September’s meeting.

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