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Pressure On Local Assets Prompts FX Intervention

BRAZIL

Brazilian assets under pressure once again with an extended shift higher/steeper in the local swaps curve. USDBRL had filled the November 4th gap through 5.6650 and now potentially targets the October 2020 highs of 5.8080. Weakness of just under 1% has prompted intervention once again.

  • - USDBRL up 0.66% at 5.6700

Brazil DI Swaps:

  • - 2-yr +9.5 bps at 5.81%
  • - 5-yr +12 bps at 7.83%
  • - 10-yr +16 bps at 8.76%

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