Trump decided to hold off on new tariffs on the European Union until July 9, which together with better-than-expected durable goods data, drove a rally in equities (S&P500 +2%; Nasdaq +2.4%) and treasuries, whose yield on long bonds fell as much as 9bps on long paper in a bull flattener that left the entire curve below 5% yield. Commodities fell 1-2% against a 0.6% appreciation of the dollar. VIX fell to 19.

Venezuela and PDVSA fell 0.5pts and 0.25pts, respectively, amid a significant depreciation of the bolivar due to the expectation that Chevron will not supply dollars in the exchange market.

In Latin American credits, IG names benefited directly from the rally in treasuries, rising as much as 1pt in Uruguay and Chile, while HY credits lagged, widening spreads 3-7bps.