Lebanese Eurobonds have retreated from their recent highs amid mounting concerns over a potential resurgence of political and security tensions in southern Lebanon. This decline has been further exacerbated by the government’s slow progress in advancing key economic and financial reforms, as highlighted by this week’s discussions with the IMF delegation, which did not result in substantial breakthroughs. Eurobond prices stabilized around 22.00 cents on the dollar during the week, as institutional investors have been actively de-risking their positions, which led to a notable decrease in trading volumes.