Pakistan’s Sovereign Bonds Decline Amidst Heightened Tensions

Pakistan’s sovereign dollar bonds experienced a sharp decline on Monday, with Tradeweb data indicating a fall of over 3 cents. This drop occurred following remarks by the country’s defense minister regarding a potential military incursion by India.

The bond maturing in 2031 saw the most significant decrease, dropping by 3.5 cents to a bid price of 78.75 cents on the dollar.

These developments come as tensions escalate between the two nuclear-armed nations, triggered by a fatal attack on tourists in Occupied Kashmir last week.