Pakistan’s bonds dive as tensions rise with India

LONDON: Pakistan’s dollar-denominated government bonds dropped more than 4 cents on Thursday, Tradeweb data showed, as tensions with neighbouring India escalated.

The 2036 maturity fell the most, shedding over 4 cents to be bid at 74 cents on the dollar.

Gunmen on Tuesday killed 26 people in occupied Kashmir, the worst attack on civilians in the country in nearly two decades.

Indian police on Thursday said two of the three suspected militants “involved in” the attack were Pakistani nationals, and the country suspended the Indus Waters Treaty, a move Pakistan called an act of “water warfare.”