Sovereign dollar rally to two-year high

LONDON: Pakistan’s sovereign dollar bonds gained as much as 3 cents on Friday, hitting their highest since early 2022 after the International Monetary Fund said it was looking forward to working with the new government.

The 2036 maturity gained the most, adding 3 cents to trade at 76.64 cents. It was on track for a second week of gains of around 5 cents.

Sovereign dollar bonds jump on political clarity

The new administration of the debt-distressed Southeast Asian nation faces tough choices and must work closely with the IMF for funds, but all its bonds are now trading well above the 70-cent mark that typically indicates distressed bonds.