LONDON- Lebanon dollar bonds gained across the curve while yield premia and credit default swaps fell on Wednesday after Saad al-Hariri suspended his decision to resign as prime minister, easing a major political crisis.

Many of the country's dollar bonds added around a cent or more and were well on their way to recover most of the losses sustained since Hariri's shock resignation on Nov 4.

The 2027 dollar issue chalked LB085936689= up the biggest gains, adding 1.68 cents to trade at 94.25 cents.

Meanwhile, the average yield spread of Lebanon sovereign dollar bonds over U.S. Treasuries fell by 9 basis points to 521 bps, their narrowest since Nov 6. Data from IHS Markit showed five-year CDS - the cost of insuring exposure to the Lebanon's sovereign debt - fell 17 bps from Tuesday's close to 549 bps.

(Reporting by Karin Strohecker, editing by Mike Dolan) ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters Messaging: karin.strohecker.reuters.com@reuters.net))