Yield on dollar bonds hits three-year low

A significant improvement in the external account has brightened Pakistan’s chances of reentering the international capital market soon as the 10-year benchmark bond yields fell to a three-year low in single digits on Feb 21. However, the government did not launch more bonds to raise dollars from the international market despite this encouraging development, said market sources. “The yield on Pakistan’s Eurobonds has dropped significantly from over 50 per cent to 9pc, marking a three-year low,” said a research report of Topline Securities. The yield on 10-year bonds in June 2023 was 61.4pc as all international rating agencies downgraded Pakistan in 2023 as the country was about to default. That was the time when the country was desperately looking for help to avoid a default-like situation.