Pakistani Bonds Decline Amid Rising Tensions

Pakistani government bonds, which are denominated in dollars, experienced a decline of over 4 cents on Thursday, according to data from Tradeweb. This drop occurred as tensions with neighboring India intensified.

Bond Performance

The bond maturing in 2036 saw the most significant decrease, falling by more than 4 cents, with bids at 74 cents per dollar.

Background of Tensions

Earlier in the week, armed individuals killed 26 people in Kashmir, marking it as the most severe attack on civilians witnessed in almost two decades.

Allegations and Reactions

On Thursday, Indian authorities alleged that two of the three militants believed to be involved in the aforementioned attack were Pakistani nationals. Furthermore, India has reportedly suspended the Indus Waters Treaty, a move that Pakistan has criticized as an act of “water warfare.”