The increase in tensions between Israel-Iran, with reports pointing to a possible attack by the former, and the consequences of retaliation via proxy from Iraq to US assets caused a wave of demand for treasuries, which also had a good 30y auction today, causing yields to fall by 5-7bps across the curve. Equities fell in Asia and Europe, while the US saw a slight increase. In commodities, energy finished flat as it recovered from an initial 2% drop, while metals and agriculture fell slightly, except for gold which rose 1%.

Venezuela and PDVSA had another session with no major movements, seeing selling in the middle and long side of PDVSA.

In Latin American credits, Ecuador stands out again, up 1-1.25pts after reaching an agreement with the IMF on a $1Bn increase over last year's approved $4Bn plan. The rest of the region closed flat at +0.5%.