JOHANNESBURG: Pakistan and Kenya's sovereign dollar bonds rose sharply on Tuesday, as investors bought back into some frontier market issuers amid dollar weakness.

Pakistan's shorter-dated dollar denominated bonds were up as much as 8.7 cents in the dollar, Tradeweb data showed, though still traded at deeply distressed levels of around half its face value.

Signs of Chinese support for Pakistan, which is in a fragile financial situation, helped drive the gains for its bonds, said Kevin Daly, head of emerging market debt at abrdn.

Rupee remains stable against US dollar

Meanwhile Kenya's 2032 maturity rose the most, up 3.5 cents in the dollar to trade at 77 cents.

The premium demanded by investors to hold Kenya's hard-currency bonds over safe haven U.S. Treasuries narrowed to 740 bps - the tightest in five months, according to JPMorgan data.

Pakistan secures $13bn-14bn in financial commitments, says Dar

A frontier market rally, plus short covering, helped Kenyan bonds, analysts said.