LONDON- Lebanon's dollar-denominated sovereign bonds rallied hard on Wednesday after fresh signs that the country could form a government and an indication from Saudi Arabia that it stood ready to provide support.

Bonds were up across the curve, with the issue jumping 2.9 cents to trade at 78.8 cents, according to Tradeweb data. Many of the country's bonds have now nearly recovered all the losses suffered after talk of a debt restructuring roiled markets in early January.

The latest gains come after parliament speaker Nabih Berri met with Prime Minister-designate Saad al-Hariri on Tuesday and was cited as saying after Hariri is intensifying his efforts to form a government and was hoping to seal a deal within a week or less.

Meanwhile Saudi Arabia's Minister of Finance Mohammed al-Jadaan told CNBC the kingdom would continue to be a "very important catalyst of stability in Lebanon." 

"We are interested to see stability in Lebanon and we will support Lebanon all the way," al-Jadaan said in comments, which came hot on the heels of rival Qatar announcing it would buy $500 million U.S. dollar bonds issued by Beirut to support the Lebanese economy.

(Reporting by Marc Jones in London and Ellen Francis in Beirut, writing by Karin Strohecker) ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters Messaging: karin.strohecker.reuters.com@reuters.net))