Pakistan’s sovereign bonds saw a rally on Monday, with prices rising more than 4 cents across key issues, according to data from Tradeweb.
The 2036 bond experienced the largest gain, rising by 4.46 cents to be bid at 77.04, while the 2031 bond added nearly 4 cents, bringing its bid to 83 cents on the dollar.
This uptick in bond prices comes after Pakistan and India agreed to a ceasefire on Saturday, following several days of heightened conflict between the nuclear-armed neighbours. Both countries’ military operations chiefs are scheduled to meet on Monday to discuss the next steps in the ongoing de-escalation process.
On the back of the ceasefire deal, Pakistan stock market also staged a spectacular rally on Monday, with the benchmark KSE-100 Index soaring by nearly 10,000 points, reflecting a 9% surge.
Across the board, buying momentum was observed in key sectors, including banking and energy stocks. Index-heavy stocks such as HUBCO, NRL, MARI, OGDC, PPL, POL, PSO, SNGPL, SSGC, HBL, MEBL, MCB, and UBL traded in the green.
This surge was driven by a combination of factors, including the recent ceasefire deal between Pakistan and India, and the International Monetary Fund’s (IMF) approval of crucial funding for Pakistan and a monetary easing by the State Bank of Pakistan in the form of a rate cut.
