LONDON: Pakistan’s sovereign dollar bonds jumped on Wednesday after two major political parties said late on Tuesday they had reached an agreement to form a coalition government.

The country’s international bonds maturing in 2031 enjoyed the biggest gains, up 2.7 cents on the dollar, at 61.7 cents, according to Tradeweb data.

The 2026 notes were up 2.6 cents to 76.95 cents.

Pakistan sovereign dollar bonds slide in aftermath of contentious election

The agreement between Pakistan People’s Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) ended 10 days of intense negotiations after an inconclusive national election did not return a clear majority.

Pakistan’s benchmark share index. KSE rose 1.78% in early trade on Wednesday.