LONDON, Oct 31 (Reuters) - Lebanon’s dollar bonds rose for the first time in ten working days on Thursday as troops and riot police were deployed to reopen roads blocked by protesters and banks were due to resume operations and receive customers on Friday.
The 2021 issue rose 0.8 cents, its most in six weeks, to 68.5 cents in the dollar, while the 2037 bond added 0.6 cents to 54.9 cents in the dollar, Tradeweb data showed.
The bonds have been under huge selling pressure in recent days after two weeks of anti-government protests that have led to the closure of banks and simmering concerns about the government’s ability to meet its debt obligations.
Those demonstrations largely subsided after Saad al-Hariri resigned as prime minister on Tuesday. Hariri is ready to return to lead a new government, a senior official familiar with his thinking said on Wednesday, on condition it includes technocrats and can quickly implement reforms to stave off economic collapse.
Lebanon’s 5-year credit default swaps, a measure of the cost of insuring exposure to the country’s sovereign debt, dropped 81 basis points from Wednesday’s close to 1,632 bps, IHS Markit data showed. (Reporting by Tom Arnold, editing by Karin Strohecker)