Higher rates globally, following a bear steepener in which short bonds closed unchanged and long bonds fell, seeing a 5-6 bps rise in long yields that brought the 2-20 yr and 2-30 yr spreads back to 100 bps. Expectations for rate cuts this year remain at -50 bps, with the first cut expected in September and another in December, based on current prices. Equities had remained unchanged for most of the day in the US, but we saw selling toward the end of the session that drove indices to -0.4% on the day, clashing with the previous rise in equities in Asia and Europe. In commodities, most sectors rose, particularly natural gas and wheat, amid a depreciation of the dollar that has already erased all the gains it had made in May (DXY 100.1).

Venezuelan bonds rallied 0.5-1 pt after the US extended Chevron's license for 60 days, and it was later revealed that Venezuela had released a former US military officer who was being held in Venezuela.

In Latin American credits, Argentina's sovereign recovered from a wave of selling in the morning, closing up 0.25 points, similar to Ecuador, on a day with little movement in the region.