MNI BRIEF: Fed's Waller Sees Two Or Three Cuts In 2025

MNI BRIEF: Intl Economic System Unsustainable- US's Bessent

MNI BRIEF: Trudeau- Trade War Lasting Into Foreseeable Future

MNI BRIEF: US 25% Tariffs On Mexico Paused Again - Sheinbaum

MNI CBRT WATCH: Key 1W Repo Rate Cut 250Bps As Expected

MNI China Daily Summary: Thursday, March 6

EZ/UK Bond Supply Calendar: Belgium ORI On Friday

US EIA:NAT GAS STORAGE -80 BCF TO 1,760 BCF FEB 28 WK

MNI:US JAN WHOLESALE INV 0.8%; SALES -1.3%

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BRAZIL: DI Swaps Underperform As Government Prepares Food Price Measures

BRAZIL
BulletEM BulletEmerging Market News
  • Brazilian DI swap rates have underperformed slightly today, with yields in the belly and long-end up by around 10bp in a bear-steepening move, as agriculture minister Favaro has said that the government will announce measures to contain food price pressures.
  • Government officials held meetings today to discuss the matter as rising prices continue to weigh on President Lula’s popularity. Concerns about the government’s commitment to fiscal discipline continue to weigh on sentiment.
  • In Mexico, while front-end TIIE-F swap rates have remained well contained, longer-end yields have risen by 5-8bp as tariff developments continue to dominate attention. Recent headlines from US Commerce Secretary Lutnick and then President Trump provided a more optimistic narrative, as all goods tied to the USMCA were granted another month extension to April 02.
  • TIIE-F swap rates remain lower over the last week, however, especially at the front-end, as recent weak activity data keep the door open to another 50bp Banxico rate cut later this month. Feb CPI data tomorrow are likely to support this view, with core inflation set to stay stable and headline inflation remaining inside the target range.
  • Elsewhere, Chile camara swap rates have risen by 4-6bp today, following robust nominal wage data and ahead of Feb CPI tomorrow, which is set to support the case for an extended BCCh rate pause.
214 words

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.
  • Brazilian DI swap rates have underperformed slightly today, with yields in the belly and long-end up by around 10bp in a bear-steepening move, as agriculture minister Favaro has said that the government will announce measures to contain food price pressures.
  • Government officials held meetings today to discuss the matter as rising prices continue to weigh on President Lula’s popularity. Concerns about the government’s commitment to fiscal discipline continue to weigh on sentiment.
  • In Mexico, while front-end TIIE-F swap rates have remained well contained, longer-end yields have risen by 5-8bp as tariff developments continue to dominate attention. Recent headlines from US Commerce Secretary Lutnick and then President Trump provided a more optimistic narrative, as all goods tied to the USMCA were granted another month extension to April 02.
  • TIIE-F swap rates remain lower over the last week, however, especially at the front-end, as recent weak activity data keep the door open to another 50bp Banxico rate cut later this month. Feb CPI data tomorrow are likely to support this view, with core inflation set to stay stable and headline inflation remaining inside the target range.
  • Elsewhere, Chile camara swap rates have risen by 4-6bp today, following robust nominal wage data and ahead of Feb CPI tomorrow, which is set to support the case for an extended BCCh rate pause.