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New Daily Deaths Record, Local Assets Under Pressure

BRAZIL
  • A continued deterioration of the pandemic in Brazil is exerting pressure on local assets this morning. The new health minister Queiroga shunned lockdowns as a government tool, telling local media it should only be used in extreme situations.
  • This comes amid another daily record death toll. Yesterday's figures showed another 83,926 cases were confirmed in the last 24 hours with the country's coronavirus death toll rising by 2,841.
  • Combined with the move higher in US yields, local assets are reacting unfavourably as expected. USDBRL is 1% higher on the session and swap rates have reversed yesterdays move lower, currently up between 3-7bps across the DI curve.

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