A risk-averse session followed Trump's rejection of Iran's latest proposal to reopen the Strait of Hormuz, prolonging the energy shock and deepening the sell-off in Treasuries. Equity indices closed lower, with the Nasdaq falling 0.9%, the S&P 500 0.8%, and the Dow Jones 0.7%. Asia was the hardest hit region, with the Kospi dropping 2.7%, the CSI 300 2.2%, and the Nikkei 0.7%, while the Stoxx 600 slipped just 0.3%. On the commodities front, Brent crude rose 1.5% to $105.90 and WTI crude gained 0.5% to $92.90, paring some of their gains after reports that Trump would be willing to offer sanctions relief in exchange for progress on the nuclear issue. Metals plunged, with gold falling 3.9% and silver 5.5%, hit by the rate hike. Treasuries extended their biggest sell-off since April 2025, with the 2-year US Treasury bond rising 7 basis points to 4.93%, the 10-year bond 7 basis points to 5.23% at a 19-year high, and the 30-year bond 6 basis points to 5.55%, with the long end slightly lagging, while swaps are already pricing in at least three more 25-basis-point rate hikes by the Fed over the next 12 months. In Europe, the 10-year Bund rose 4.2 basis points to 3.64% and the 10-year Gilt 5.3 basis points to 5.42%. On the FX and volatility side, the DXY rose 0.2% to 101.2 and the VIX added 1.2 points to 16.1.

In Venezuela/PDVSA, bonds declined for the seventh consecutive session, with drops of 0.6-0.7 points on the yield curve and 0.4-0.7 points for PDVSA bonds, while Elecar fell 0.5 points and PDV'20 0.3 points. Trading volume was USD 55 million, mostly in PDV'24 bonds.

In Latin America, the yield curves fell 0.8-1.4 points, with Ecuador and Pemex leading the losses at 1.4 points, followed by Brazil and El Salvador at 1.2, the Dominican Republic at 1.1, and Colombia at 1.0 points, while Mexico dropped 0.9 and Argentina 0.8 points. High volume.