LONDON: Pakistan’s sovereign dollar-denominated bonds rallied in advance of weekend elections for prime minister, Tradeweb data showed on Friday.
The 2027 maturity gained the most, rising around 1 cent to trade at 77.3 cents.
Pakistan’s newly-formed ruling alliance nominated Shehbaz Sharif as prime minister in an election scheduled for March 3, and his bid is expected to succeed.
The country’s embattled economy has a narrow path to recovery, and a crucial IMF agreement expires on April 11.
Pakistan sovereign dollar bonds drop as election results trickle in
The premium demanded by investors to hold Pakistan’s international bonds over safe-haven US Treasuries has tightened to 955 bps - its lowest level since May 2022 and dipping below the psychological 1,000 bps threshold, according to data from the JPMorgan EMBI Global Diversified Index.
Pakistan’s benchmark share index also rose 1% on Friday, according to the Karachi stock exchange website.
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