With the market awaiting Powell in Jackson Hole tomorrow, we saw a new rate hike globally, which in the treasury curve was 3-4bps and a relevant move in rate futures, which assume a 72% probability of the 25bps cut in the September meeting and 90% of a second 25bps cut in December, significantly reducing the expectations they had a few days ago. Equities fell slightly in the US on mixed results. In commodities, energy rose 1-1.5%, metals and agriculture also mixed.

Venezuelan bonds continue to benefit from increased pressure from the US government on the Venezuelan government, in the face of an implied increase in potential political change. Both curves rose 0.25-0.5pts, seeing higher volume in PDVSA than in sovereigns, particularly in the middle part of the curve. PDV'20 fell to 94.5-96.5.

 

Argentina started the day 0.5pts higher and eased throughout the day to close -0.5pts, amid political turbulence in the senate. The rest of the region fell 0.25-0.75pts.