November 13, 2017 / 8:54 AM / a year ago

Lebanon bonds rebound as PM Hariri says to return home soon

LONDON, Nov 13 (Reuters) - Lebanese dollar bonds rebounded on Monday after Prime Minister Saad al-Hariri said he would return to the country soon and could rescind his resignation if Shi'ite group Hezbollah agreed to stay out of regional conflicts.

The bonds have sold off heavily over the last week on belief Hariri had been coerced into resigning by Saudi Arabia. The resignation and its aftermath thrust Lebanon back to the forefront of the conflict between Sunni Saudi Arabia and Shi'ite Iran.

The 2024 bond rose 2.4 cents while issues maturing 2027, 2028 and 2032 rose as much as 1.6 cents , Reuters data showed.

"There's been a slight easing in concerns that a proxy conflict will erupt between Iran and Saudi Arabia," said Jason Tuvey, an economist at Capital Economics.

"But with (Prince Mohammed bin Salman) taking an increasingly aggressive stance, markets have built in an additional risk premium into the regional volatile markets." (Reporting by Marc Jones and Sujata Rao)

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