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Local Rates Snapshot - Brazil DI Curve Bull Flattens

LATAM
  • Brazil DI curve has held on to the bull flattening move on Monday on a more optimistic fiscal outlook, confirmed by most recent headlines suggesting confirmation the budget impasse has been navigated.
  • In direct contrast, Chilean swap rates are marginally higher across the Camara curve as President Pinera announced a boost to pandemic spending, likely to cost in the region of $5.5 billion. These measures are likely to be a proposal used to counter a potential third pension withdrawal in the country, currently being voted on by a senate committee that goes against the views of the President.
  • Brazil DI Swaps:
    • 1-yr -1 bps at 4.64%
    • 2-yr -7 bps at 6.24%
    • 5-yr -18 bps at 8.14%
    • 10-yr -22 bps at 8.94%
  • Chile Camara Swaps:
    • 1-yr +3 bps at 0.69%
    • 2-yr +5 bps at 1.23%
    • 5-yr +5 bps at 2.37%
    • 10-yr +7 bps at 3.36%

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