On Tuesday, Brazil’s principal DI contract rates dropped, echoing a decline in U.S. Treasury bonds and a slight dip in the country’s 2024 inflation expectations.
January 2025 DI rates fell to 9.88%, 2026 to 9.665%, 2027 to 9.865%, and 2028 to 10.125%. The January 2031 contract dropped to 10.54% from 10.603%.
This trend aligned with a fall in U.S. Treasury yields, with the ten-year benchmark dropping 8.40 basis points to 4.135%, reflecting an adjustment after a previous increase.
Market anticipation grows ahead of U.S. employment figures and Federal Reserve Chair Jerome Powell’s remarks.
In Brazil, the Central Bank’s Focus survey revealed analysts have cut this year’s inflation outlook again, improving economic growth projections.
This reassessment partly explains the interest rate curve’s tightening.
Inflation expectations for this year are now at 3.76%, slightly down from 3.80% the week before.
Yet, projections remain at 3.51% for 2025 and 3.50% for subsequent years, surpassing the 3.0% target.
These developments indicate a cautious but optimistic approach in financial markets, as Brazil aligns its monetary policy with global economic signals and domestic forecasts.