Halister News

(Bloomberg) -- TD Securities drops 10-year Treasury yield estimate from 2.8%; also lowers forecast for the end of 2018 to 2.75%, from 3.3%.

• Reasons for change are reduced likelihood of fiscal stimulus, slower inflation and a somewhat less hawkish ECB
• Fed will still hike at a faster pace than markets are expecting, according to strategists Priya Misra, Gennadiy Goldberg and Cheng Chen
• 10Y yield currently at 2.19% and hasn’t reached 2.5% since March
• Other UST yield forecasts for year-end 2017: 2Y at 1.6%, 5Y at 2.05%, 30Y at 3.05%

To contact the reporter on this story: Brian Chappatta in New York at bchappatta1@bloomberg.net To contact the editors responsible for this story: Boris Korby at bkorby1@bloomberg.net Jenny Paris

--Washington Newsroom (202) 624-1820

(Bloomberg) -- Although the opposition has tried to disrupt the process, approval of new TLP rate in lower house shows that govt still has the strength needed to pass the economic agenda through Congress, said manager of multimarket funds at XP Gestao Bruno Marques in a telephone interview.

• Markets will celebrate because measure is extremely constructive in long term; it brings improvements to economy’s productivity, to fiscal sector
• TLP rate not only may softens subsidies from govt, but also improves the profitability of BNDES
• NOTE: Brazil House Approves Main Text of Interest Rate Bill

Original Story: XP Gestão: TLP reafirma força do governo no Congresso To contact the translator on this story: Danielle Chaves in Sao Paulo at djelmayer@bloomberg.net Reporter on the original story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Marisa Castellani

--ELIZABETH FOURNIER