Crude oil futures trading opened last night with WTI rising more than 25% to $119, plummeting to $94 in the afternoon, and then hitting a low of $82 when Trump signaled that the war in Iran would end soon, triggering a wave of risk-taking. Nasdaq futures fell as much as 2.5% last night but closed up 1.4%, with the index swinging nearly 4%, while the S&P 500 gained 0.8% and the Dow 0.5%; earlier, there was an aggressive sell-off in Asia, where Japan’s Nikkei fell more than 5%. Yields opened higher on expectations of higher inflation driven by commodity prices, but closed down 4 bps on the Treasury curve and down 2 bps in Europe. The dollar ended the day down 0.10% after trading up nearly 1% for most of the morning, while the VIX, which hit 35.2 in the morning, closed at 25.5.

Venezuelan bonds rose, driven by oil prices, with PDVSA bonds outperforming sovereign bonds as they did last week, as the oil company’s bonds gained 0.35 points and sovereign bonds rose 0.15 points, with below-average trading volumes concentrated in the PDV’24/26 contracts.