The global trading session was marked by a rebound ahead of Nvidia’s earnings report, which snapped a seven-session losing streak ahead of Wednesday’s report. In the U.S., the Nasdaq rose 0.7%, the S&P 500 0.3%, and the Dow Jones 0.3%; overseas, the Nikkei gained 0.5%, the Kospi 0.7%, and the Stoxx 600 0.9%, while China’s CSI 300 edged down 0.2%. WTI fell 4.2% to $81.4, and Brent fell 4.2% to $88.3, following reports that the U.S. would resume its diplomatic presence in the Middle East, which eased fears of an escalation. That drop in oil prices pushed yields lower, resulting in a slight bull flattening in the 2s10s segment (the long end fell slightly more than the short end): the 2-year UST fell 5.5 bps to 4.2%, the 10-year UST fell 7.3 bps to 4.6%, and the 30-year UST fell 6.5 bps to 5.2%; In Europe, the 10-year Bund fell 5.2 bps to 3.2%, and the 10-year Gilt dropped 6.9 bps to 5.0%. Gold rose 0.3%, copper rose 1.6%, and silver remained flat. The DXY fell 0.1% to 98.9, and the VIX declined 0.4 points to 15.4. On the macro front, the Fed’s preferred inflation data is expected on Wednesday, following U.S. consumer confidence hitting its lowest level since the start of the year, and attention is focused on Kevin Warsh’s speech on Friday. On the geopolitical front, Canada responded to Trump’s tariffs by doubling its counter-tariffs on steel and aluminum to 50%.

The sovereign yield curve showed slight fluctuations, remaining virtually flat (short-term -0.1 pts, medium-term unchanged, long-term +0.1 pts). PDVSA performed similarly, also remaining flat overall. The exception was Elecar, which fell 0.7 pts. The PDV'20 closed flat. Volume was low but improving.

Latin American bond yields mostly closed higher. Brazil led the way with a gain of 0.7 points, followed by Colombia (0.6 points), Pemex (0.5 points), Mexico and Ecuador (0.4 points each), and the Dominican Republic (0.4 points); El Salvador gained 0.2 points. Argentina was the only exception, with a slight decline of -0.1 points. Trading volume was medium to high.