New attacks between the U.S. and Iran put markets on the defensive, with crude oil rising 2.5% (WTI $96, Brent $98), while global equities fell, accompanied by a rise in yields of up to 9 basis points in Europe and 6 basis points in the U.S.; U.S. rate futures continue to point to a 25-basis-point hike by the Fed by year-end. The dollar appreciated 0.3% (DXY 99.5) and the VIX rose to 16.

Venezuelan bonds were in demand this morning, building on the momentum from yesterday's close, with both yield curves rising by 0.5 basis points, and strong demand for illiquid PDVSA bonds (27s, 37s).

Latin American bonds fell by 0.25–0.5 percentage points, with spreads against Treasuries remaining largely unchanged