Trump’s back-and-forth with Iraq resumed, with a U.S. attack on Iraqi forces in retaliation for their disruption of shipping traffic through the Strait of Hormuz, while Trump said he “doesn’t expect the war to start again; it will be quick.” Equities fell globally, although the tech sector in the U.S. rebounded significantly, with the Nasdaq closing up 0.2% after having fallen more than 1% at its lowest point. Meanwhile, interest rates continue to rise in both Europe and the U.S., with European sovereign yields rising by up to 14 bps and U.S. yields by 3 bps, keeping the 30-year yield above 5%; interest rate futures also point to 37 bps in rate hikes by the Fed for the remainder of the year. In commodities, crude oil rebounded 4% to $73 for WTI and $78 for Brent, while metals and agricultural commodities fell despite the dollar depreciating slightly (DXY 101).

Venezuelan bonds broke their recent losing streak, with long-term sovereign bonds gaining up to 1.25 points and PDVSA bonds gaining 1 point on above-average trading volume, with activity focused on the PDV’27 and ’26 bonds on the oil company side and the VENZ’26 and ’31 bonds on the sovereign side.

In Latin American credit markets, Argentine sovereign bonds saw their prices adjust for redemption ahead of tomorrow’s principal and interest payment, closing net down about 0.30 points; meanwhile, the rest of the region fell 0.5–1 point amid the global fixed-income sell-off, with spreads widening by 4–7 basis points.