Reported about 1 year ago
Investors in Brazil face challenges with wild swings in swap rates, as contracts maturing in January 2027 have surged 185 basis points in the second quarter, leading to uncertainties about rate cuts. The market turmoil was triggered by doubts on the government's fiscal framework, the central bank's rate decisions, and recent comments from officials. Despite potential opportunities for bets on lower rates due to mispricing, concerns remain over the country's fiscal outlook and the need for clear expenditure-cutting measures to boost confidence.
Source: YAHOO