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Local Swap Rates Extend Higher Amid Domestic Pessimism

BRAZIL

{BZ} More aggressive moves in the rates space with yields on the 10-year Di contract back above 8% (as shown below), looking to extend volatile moves witnessed since the beginning of 2021. The local swap rates curve is seen higher between 16-23 basis points. Pressure stemming from the marginally hawkish Copom Statement and mounting pessimism that further fiscal aids will need to be delivered.



Source MNI/BBG

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