July started with declines in Asian and European equities, while in the US we saw an unusual rotation from tech/growth to value, with the Dow Jones rising 1% and the Nasdaq falling 0.9%. In rates, the treasury curve had a bear flattener, with short bonds falling (+5bps yields) and long bonds flat, with the 2y-20y and 2y-30y spreads returning to 100bps. Within commodities, energy and metals rose 0.5-1% and agriculture fell 1%. VIX stable near 17.

Venezuela and PDVSA remain in demand, particularly today sovereigns which rose 0.5pts, while the oil company's bonds gained 0.25pts; volumes were focused on the sovereign long side and PDVSA mid-side.

In Latin American credits, El Salvador again led the region, up 1pt on the long side, with Pemex up a similar amount and the average holding at +0.25pts. On the downside, YPF stood out, falling 1pt, following yesterday's sell-off on the ruling against Argentina, which said today it will appeal the decision.