Brazil May Suspend FI Notes If Tension Persists, Kawall Says
Source: BFW (Bloomberg First Word)
People
Carlos Kawall Leal Ferreira (Banco J Safra)
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Brazil’s Treasury may signal suspension of fixed-income bond sales to help cool pressure over long-term rates should tension linked to American election persists, Carlos Kawall, economist at Banco Safra and a former Treasury secretary, says in a phone interview.
Alert: HALISTER1- Treasury decision to buy back NTN-F and cancel auction of notes was ’’totally correct’’
- While the scenario is not a “serious crisis‘‘ yet, there is a ‘‘global repricing of fixed-income markets”
- Expectation of rate hike in U.S., already seen before Trump election, increased given elected president’s hints of expansionary fiscal policy, protectionism
- To cope with BRL volatility, BCB likely to keep offering FX swaps as main demand for USD is for hedge in futures market
- Market has no appetite for risk, leading volatility to rise
Source: BFW (Bloomberg First Word)
People
Carlos Kawall Leal Ferreira (Banco J Safra)
To de-activate this alert, click here
UUID: 7947283