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Public Workers Continue To Pressure Govt. For Wage Increases

BRAZIL
  • USDBRL will likely open higher in line with higher US yields and lower global equity indices. Key resistance is unchanged at 5.7563, the Dec 21 high, however, initial resistance resides at the 20-day EMA, which intersects around 5.61. DI swap rates are also likely to face further pressure amid soaring global yields.
  • Central bank President Roberto Campos Neto has lunch with Economy Minister Paulo Guedes at 12:30pm Brasilia time, during which they are expected to discuss government affairs.
  • Treasury auctions Selic-linked LFT notes due 2025 and 2028; inflation-linked NTN-B local notes due 2025, 2032 and 2045
  • Public employees continue to pressure the government for wage increases; Folha reported that some entities are asking for a raise of as much as 28.75%. (BBG)
    • Unions remain disgruntled with Bolsonaro’s signal that he’ll only fight for wage increases for policemen. Economy Minister Guedes reiterated that each percentage point of salary raise to workers would mean an increase of 3 billion reais ($543.2 million) on government annual expenses.

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