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USDCAD TECHS

Pullback Considered Corrective

AUDUSD TECHS

Holding Above Recent Lows

US EURODLR OPTIONS

BLOCK, Large 3Y Midcurve Put Condor

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.