Free Trial

Brazil fixed income has really moved. -.....>

BRAZIL
BRAZIL: Brazil fixed income has really moved. 
- Generic 10YR LCY yield up to 12.08% yesterday from 9.9% a month ago. 
- It seems to be driven by inflation concerns. Brazil 10 YR USD bond yield is up
just 50bps over the same period. 
- Cumulative 10YR market-implied default probability has barely moved, although
still high at 37% reflecting a large primary fiscal deficit. 
- 10YR breakeven is up 140 bps to 6.42% over the last month. 
- Spot inflation is low at 2.8%, but the sharp rally in USDBRL (3.80) since
March poses a threat to price stability.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.