Lebanon’s government bonds fell to fresh lows on Monday as traders waited on a possible government decision about how it will deal with its debt, including a $1.2 billion Eurobond maturing in March.
An April 2021 issue shed 2 cents to 50.4 cents in the dollar, while an October 2022 bond
dropped 1.9 cents to 43.2 cents in the dollar, Tradeweb data showed.
The sell-off preceded a possible government decision on whether its March bond – the next due for repayment – might be included in any debt restructuring. Hours after he was named, Finance Minister Ghazi Wazni last week said the government must decide on its approach to the $1.2 billion issue.
“I suppose market sentiment may be leaning that they may be included [in any debtrestructuring],” said Giyas Gokkent, of JPMorgan Securities.
Lebanon's bonds fall as debt restructuring decision looms