Significant declines in investment grade fixed income marked the beginning of December, with yields rising 5-7bps in Europe and up to 9bps on the Treasury curve, although interest rate futures continue to discount a 25bps cut in the Fed Funds Rate next Wednesday by the Fed. Equities also gave back some of last week's gains, falling 0.5% on average in the US, with the Nikkei standing out with a 1.9% decline. On the commodities side, energy recovered 1.5%, with WTI close to $60 and Brent close to $64, while agriculture rose and metals were mixed.

Following the weekend news flow, coupled with confirmation of a meeting at Trump's White House with Hegseth, Rubio, and others on Venezuela, Venezuelan bonds ended up gaining 0.5-1pt on the day.

Latin American credits mostly fell by 0.25-0.75 pts in response to the decline in Treasuries, while Ecuador continued to stand out on the positive side, advancing 0.5-1 pt, bringing the average increase for the last month to 8 pts.