Pakistan’s dollar-denominated government bonds saw a significant drop on Thursday, with the 2036 maturity bond shedding more than 4 cents, bidding at 74 cents on the dollar, according to Tradeweb data.
This decline comes as tensions with neighbouring India have escalated.
The unrest follows a deadly attack in occupied Kashmir on Tuesday, which left 26 people dead in what is being considered the worst assault on civilians in the region in nearly two decades.
Indian authorities have claimed that two of the three militants suspected of carrying out the attack were Pakistani nationals.
In response, India suspended the Indus Waters Treaty, a move Pakistan has condemned, calling it an act of “water warfare.”
