Markets saw increased volatility amid renewed escalation in rhetoric between the U.S. and Iran, with global equities falling and interest rates rising despite U.S. inflation coming in exactly as expected, at 4.2% year-over-year for headline inflation and 2.9% for core inflation. Crude oil rose 3%, while metals fell sharply, with gold dropping below $4,100 per ounce and silver below $64 per ounce. The VIX saw another spike to 22.

Venezuelan bonds were weak throughout the day, with many low-grade bonds trading today toward the low bids in the market; the bonds closed down 0.25–0.5 points.

Latin American credit spreads followed a similar trend, falling by 0.25–0.5 points, which left spreads essentially unchanged.