Brazil’s interest rate futures open in strong decline to lows not seen since February 2022
The relief in inflation reinforces expectations that a cut in the basic interest rate (Selic), currently at 13.75% per year, may be closer
Interest rate futures operate in a firm drop along the whole term structure of the curve at the beginning of business this Thursday, pressured by the reading of the IPCA-15 of May much below the expectations of financial agents.
The relief in services inflation accentuates the downward movement of rates, which puts the interest rates in the core of the curve at levels below 11% for the first time since February 2022.
The relief in inflation reinforces expectations that a cut in the basic interest rate (Selic), currently at 13.75% per year, maybe in the offing.
Around 9:15 am, the rate of the Interfinancial Deposit (DI) contract for January 2024 dropped from 13.27% in yesterday’s adjustment to 13.19%; the DI for January 2025 fell from 11.62% to 11.45%; the DI for January 2026 dropped from 11.11% to 10.89%, and the DI for January 2027 went from 11.14% to 10.935%.
The IPCA-15 rose 0.51% in May, the IBGE informed earlier.
The rate is the lowest for May since 2021 (0.44%). The result was below the median of 36 projections of analysts from consulting and financial institutions consulted by Valor Data, which estimated a high of 0.64% in May. The range of estimates was 0.48% to 0.72%.
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Brazil — Live Market Board
+1.55%
174,576.80
+1.55%
65,522.56
-0.38%
11,450.75
-0.76%
3,009,029
+0.46%
2,508.47
-0.09%
60,117.56
+0.55%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,576.80 | +1.55% | +21.85% | 171,906.72 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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