During Kevin Warsh’s first confirmation hearing for the position of Fed Chair, he struck a “hawkish” tone, triggering rises in Treasury yields and declines in equities that ultimately totaled 0.6%, compounded by the cancellation of Vice President JD Vance’s trip to Pakistan to negotiate with Iran. The Treasury yield curve ended as a bear flattener, with short-term bonds falling more (+8 bps in yields) than long-term bonds (+3 bps), while rate futures continued to price in no changes through 2026. In commodities, crude oil closed up 3% (WTI $92, Brent $98) after reaching a high of +5%, while metals retreated, particularly gold and silver, and agricultural commodities were mixed at 1%. The dollar appreciated 0.3% (DXY 98.34) and the VIX rose to 20.55.

Venezuela and PDVSA opened the day up 0.5 points and traded within that range from start to finish, with higher-yielding bonds seeing stronger demand overall.