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Asset Prices Suffer Despite Minister's Comments On Pandemic Response

BRAZIL

Minister Queiroga:

  • Bolsonaro's order is to widen vaccination
  • Goal is to vaccinate 1million people/day
  • Bolsonaro gave me autonomy to name health secretaries
  • Brazil govt aims to speed up vaccination by 3 times
  • Brazil govt to have special secretariat for pandemic
  • Asks population to have faith on govt

BRL continuing to weaken into the close with USDBRL now up 2% on the day and firmly back above pre rate hike levels. Mounting pressures also being reflected by a bear steeper DI Curve – swap rates rising ~25 basis points in the belly and long end.

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