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Brazil DI Curve Shifts Higher Following Above Estimate IPCA Data

BRAZIL
  • Brazil May IPCA-15 rose to 12.20% against a median estimate of 12.03%. Following the data, the DI Curve has come under pressure with swap rates rising between 14-30 bps.
  • The Copom next meets on June 15, with speculation the committee will further be required to tighten policy. The next IPCA inflation data is scheduled for June 9.
  • Brazil DI Swaps:
    • Jan '23 +14 bps at 13.40%
    • Jan '27 +30 bps at 12.08%
    • Jan '32 +24 bps at 12.17%

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