Lebanese Eurobonds Yields Up but US Treasury Down Amid Possible Easing of Geo-Political Tensions

Lebanese Eurobonds Yields Up but US Treasury Down Amid Possible Easing of Geo-Political Tensions

 11/06/202604/06/2026ChangeYear to Date
BLOM Bond Index (BBI)26.6227.74-4.02%10.53%
Weighted Yield         61.90%59.55%3.94%-8.73%
Weighted Spread5,805.425,573.394.16%-9.73%

The BLOM Bond Index (BBI), which tracks Lebanese government Eurobonds (excluding coupon payments), fell by 4.02% over the course of the week ending June 11th 2026, closing at 26.62 points, driven by prolonged war in Southern Lebanon and return of US strikes on Iran. Despite the weekly decrease, BBI improved considerably by 10.53% YTD. And as bond prices decreases, yields increase and so the weighted yield rose by 394 basis points to 61.90%.

In Lebanon, this week was categorized by a fragile security environment and recurrent economic challenges. Security developments remained closely linked to regional geo-political tensions, monitoring the possible spillover effects of wider Middle Eastern conflicts despite signs of diplomatic efforts aimed at reducing hostilities. Economically, the country continued to face pressure from continued direct and indirect losses resulting from the continued war between Hezbollah and Israel. Rising global energy prices and regional uncertainty added to inflationary risks and weighed on market sentiment. Political and security tensions shifted attention far from financial and economic reforms that were put as a priority before the restart of the war. 

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