Trump said he will fire Fed Governor Lisa Cook over document forgery, which is expected to be a major legal war given the lack of precedent for firing a Fed governor; however, short treasuries rose (yields -5bps) and longs were unchanged. In equities, Asia and Europe closed in the red and in the US there were slight gains after trading lower most of the day on a slight depreciation of the dollar. In commodities, energy and metals fell, while agriculture finished mixed. VIX up near 15.

Venezuela and PDVSA continue to be sued on news that the US is sending more ships to the Caribbean to fight drug trafficking. PDV'20 rose 2pts after the Special Master said that Elliott's (Amber Energy) offer is better than Gold Reserve's, giving Gold Reserve 3 days to improve its offer for Citgo.

 

In Latin American credits, Argentina started with a rebound of 0.5pts but was then dragged down with the rest of the market, closing down 0.25pts as did the other major credits in the region.