The US announced plans to expand its sanctions against Chinese technology companies, leading to a 1.6% drop in US equities on the Nasdaq. However, the Nasdaq recovered almost all of the fall, closing at -0.3% and the S&P 500 at 0.05%. The Treasury curve experienced a slight bullish steepener, with short bonds gaining (-3 bps yields) and long bonds remaining flat, pushing the 2-year-20-year and 2-year-30-year spreads back above 100 bps. Commodities fell across most categories against a largely unchanged dollar. The VIX remained stable at 19.3.

Venezuela and PDVSA saw more selling in the long-term sovereign curve, which fell 0.5pts, while the rest of the sovereign curve and PDVSA remained basically flat.

Latin American credits closed flat to down 0.3 points with low volumes, with spreads widening slightly.