Pakistan’s dollar bonds were higher by over 1.5 points across the curve after it said that the UAE has provided assurance on a $1bn loan. This takes the sovereign closer to an IMF loan deal to avoid a default. Pakistan’s Finance Minister had confirmed UAE’s support in a Twitter post. He also added that the nation’s central bank would also receive its third and last disbursement worth $300mn from ICBC, out of its $1.3bn loan. Last week, the State Bank of Pakistan (SBP) said that its forex reserves further declined by $170mn to just about $4bn, noting that the decline was due to debt payments.

Pakistan’s 7.875% 2036s were up 2.2 points to 37.6 cents on the dollar, yielding 23.3%.

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