Pakistan’s Dollar Bonds Improve After Ceasefire, IMF Nod

Pakistan’s sovereign bonds surged on Monday after the weekend’s ceasefire agreement with India that helped calm investor nerves, Reuters reported. Bonds were in green also due to approval given by the Executive Board of the International Monetary Fund (IMF) to release ~$2.3 billion to Pakistan. According to Tradeweb data, the 2036 bond showed the strongest performance, rising by 4.46 cents to trade at 77.04 cents on the dollar. The 2031 bond also posted significant gains, increasing nearly 4 cents to reach 83 cents on the dollar. The rally followed a ceasefire agreed on Saturday between the two nuclear-armed neighbours after several days of clashes. Military operations chiefs from both countries are expected to meet today to discuss further steps toward stability.