Moody's downgrade of the US, effectively losing its last AAA rating, triggered selling in Treasuries and a drop of more than 1% in equity indices. However, we saw buying throughout the day, which saw Treasuries close in the green across the curve (-2 bps yields) and equities marginally higher after a session with little movement in either Asia or Europe. Commodities closed mixed, with agriculture gains of 1-2%, while metals and energy fell less than 1%. The VIX rose to 19.

In sovereign Venezuela, we saw sales and few bids, causing the curve to fall 0.25-0.5 pts, while PDVSA fell only 0.10 pts.

In Latin American credits, Argentina's sovereign and Buenos Aires Province bonds rose 0.75 points after an unexpected victory by La Libertad Avanza (Milei's party) in the Buenos Aires City elections; the rest of the region saw mixed results of 0.25 points.