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Brazil Markets Reopen - Swap Rates Shift Higher, BRL Weaker

BRAZIL

Brazil markets reopened and in line with expectations, local assets performed poorly. DI swap curve shifted higher between 10-12 basis points and the Real weakened by ~0.6%.


Released this morning: Brazil Feb. IGP-M Inflation 2nd Preview 2.29% M/m; Est. 1.88%. General Price data, which has a heavy weighting towards producer prices, rose ahead of estimates. However, the IPC-S index that monitors prices in Brazil's seven biggest cities came in slightly below estimates at 0.35% vs 0.4% expected. *Mid-month IPCA Inflation will be released next Wednesday.


*Today: Treasury auctions fixed-rate LTN local notes due 2022, 2023 and 2024; fixed-rate NTN-F local notes due 2029 and 2031. Selic-linked LFT notes due 2022 and 2027.


*News – Health Minister Pazuello expects to deliver over 454.9m vaccine doses against Covid-19 to all states by year-end, according to a statement sent by the ministry.

  • Pazuello's schedule foresees 50% of the population vaccinated by July, governor said in an interview.

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