A disappointing 20-year Treasury bond auction triggered a sell-off across the Treasury curve, pushing long yields up 11 bps in a new bear steepener that continued to steepen the curve. This led to a sell-off in equities, with the Dow Jones closing down 1.9% and the Nasdaq down 1.4% despite being positive early in the day. The dollar weakened 0.5% (DXY 99.5), aiding a rally in metals and agriculture, while crude oil followed US inventories. The VIX rose to 20.

Venezuela and PDVSA weakened slightly in the face of global risk-off, with sovereigns falling 0.25pts and PDVSA falling 0.10pts.

Latin American credits fell 0.25-1 pt as Treasuries fell, narrowing spreads slightly in the mid-curve segment in particular.