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DI Swap Rates Reverse Yesterday's Gains

BRAZIL

Despite another strong day for BRL (+0.35%), swap rates have reversed from yesterday and are currently up between 3-12 bps across the curve.

  • Markets potentially paying more attention to Monday's comments from VP Mourao. He commented that Brazil's tax and administrative reforms are unlikely to move forward before February next year.
  • Also, the gauge for wholesale inflation continues to beat estimates, printing above 3% this morning. Continued central bank rhetoric remains that inflation is under control, however, persistent pressures in the short term may be garnering more attention.

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