Volatility picked up today, with WTI dipping below $78 following reports that the U.S. had escorted a ship through the Strait of Hormuz—a claim that was later denied, triggering a rebound to $87 and a subsequent decline in equities, which had been trading in positive territory throughout the day. Earlier in the session, Asian and European stocks had risen 2%, reflecting a lagged reaction to yesterday’s U.S. marketclose, while European bond yields fell 6 bps, and in the U.S., the Treasury yield curve steepened, with yields rising 5–6 bps. Among other commodities, metals rose 1–2% and agricultural commodities were mixed, up 1%. The dollar depreciated 0.3%. The VIX remained stable at 25.46.

Venezuelan bonds rose despite the drop in oil prices, gaining 0.25–0.5 basis points across the curve, with bonds approaching their year-to-date highs, as attention once again shifted to the mid-term segment of PDVSA and the long-term segment of Venezuela.

Latin American bond yields rose by 0.5–0.75 percentage points.