Lebanon Bonds Rally to 2020 High on Hopes Over Banking Law

Lebanese bonds have rallied to the highest since March 2020, when the country defaulted on some $30 billion of international debt, on optimism that a proposed law to free up bank deposits is a positive step to improving the nation’s financial troubles.

Bonds across maturities have risen to about 28.4 cents on the dollar, up from 23.5 cents from December 2025 and less than 6 cents in February 2024. The move points to investors betting on an eventual debt restructuring as Lebanon’s new leadership signals a break with years of paralysis by moving to meet a key condition for an International Monetary Fund rescue.