Interest Rates Rise as Fiscal Skepticism Returns to Brazilian Markets

INSUBCONTINENT EXCLUSIVE:
The Brazilian financial market experienced a shift in sentiment on Tuesday
11.142%, up from 11.132% the previous day
12.546%, while January 2027 reached 12.735% from 12.659%
Longer-term contracts saw more significant increases.The January 2031 rate rose to 12.68% from 12.585%, and January 2033 hit 12.6% from
12.509%
Markets
(Photo Internet reproduction)Monday saw a substantial reduction in risk premiums across the Brazilian yield curve
published by Folha de S
Investors maintained expectations of a 25 basis point cut rather than the 50 basis points anticipated in September.Mary Daly, President of
the San Francisco Fed, emphasized the need for vigilance in monetary policy
By late afternoon, the yield curve priced in a 92% probability of a 50 basis point Selic hike in November.This was down from 98% on Monday,
with the chance of a 75 basis point increase rising to 8% from 2%
Internationally, short-term U.S
Treasury yields rose while longer-term yields fell.The two-year Treasury yield increased by 1 basis point to 3.954%
Meanwhile, the ten-year yield, a global investment benchmark, dropped 4 basis points to 4.032%
These market movements reflect ongoing uncertainty about fiscal policy and economic stability.Investors continue to closely monitor
government actions and global economic trends