The session was dominated by fixed income after the August core PCE yield rose less than expected, 0.2% month-over-month, with a downward revision to the previous month's figure. This brought the probability of an October Fed rate hike below 40%, according to futures estimates. The Treasury curve experienced a bearish steepener, led by long positions, as the strongest consumer spending in over a year continues the debate about how far the Fed will have to go. The 2Y US Treasury yield rose 1 basis point to 4.89%, the 10Y yield 5 basis points to 5.29%, and the 30Y yield 7 basis points to 5.63%, the latter reaching its highest level since 2002. Year-to-date, the 2Y yield has risen 141 basis points, the 10Y yield 112 basis points, and the 30Y yield 79 basis points. In Europe, the 10-year Bund fell 4.1 basis points to 3.58%, while the 10-year Gilt rose 1.6 basis points to 5.43%. Equity indices closed mixed, with the Nasdaq up 0.8% and the S&P 500 up 0.2%, the latter erasing its September losses, while the Dow Jones Industrial Average slipped 0.5%. Year-to-date, they are up 16.2%, 12.3%, and 6.3%, respectively. Asia finished mixed, with the Nikkei up 1.9%, the CSI 300 up 0.3%, and the Kospi down 0.5%, while the Stoxx 600 climbed 0.6%. Regarding commodities, WTI crude rose 1.3% to $90.50 and Brent crude climbed 0.9% to $103.50, accumulating gains of 57.6% and 70.1%, respectively, while gold fell 0.7% and silver 1.9%. On the FX and volatility front, the DXY gained 0.1% to 101.5, on track for its best month since June, and the VIX added 0.2 points to 16.2.

In Venezuela/PDVSA, the sovereign yield curve closed down 0.1-0.3 points and PDVSA down 0.1-0.2 points, while Elecar and PDV'20 fell 0.1 points. Year-to-date, the complex has accumulated gains of 15.8-23.0 points on the sovereign yield curve and 13.8-20.1 points on PDVSA. Trading volume was USD 246 million, concentrated in PDV'22 and PDV'24.

In Latin American credit markets, yield curves closed mostly lower, pressured by the rise in the long end of Treasuries, with Colombia falling 1.1 points, Pemex 0.9, the Dominican Republic 0.8, Mexico 0.6, Brazil and El Salvador 0.4, and Ecuador 0.1 points, while Argentina was the exception with a gain of 0.1 points. Year-to-date, the Dominican Republic and Mexico lead the declines with 10.1 and 8.8 points, respectively, while the rest have accumulated losses of 2.9-5.0 points. Average volume.