Yields on Brazil’s interest-rate futures contracts declined to an 11-month low on speculation slowing global economic growth may prompt Central Bank President Henrique Meirelles to stop raising interest rates.
The yield on the contract due in January 2012 fell two basis points, or 0.02 percentage point, to 11.13 percent, the lowest level since September, at 9:22 a.m. New York time. At 10.69 percent, the contracts due in January 2011 imply the central bank may keep its benchmark borrowing costs at 10.75 percent for the remaining three policy meetings this year.
A U.S. government report showed orders for durable goods increased in July less than economists forecast, sending yields on the 10-year U.S. Treasury notes to the lowest level in 19 months. In Europe, Ireland’s credit rating was cut one step by Standard & Poor’s yesterday to AA-.
“Meirelles is done with hiking,” said Ram Bala Chandran, a Latin America currency and rates analyst at Citigroup Inc. in New York. “Rates are lower everywhere, driven by global growth concern.”
The real was unchanged at 1.7705 per dollar today.
To contact the reporters on this story: Ye Xie in New York at yxie6@bloomberg.net
By - Aug 25, 2010 9:52 AM ET
http://www.bloomberg.com/news/2010-08-25/brazil-interest-rate-futures-drop-to-11-month-low-on-global-growth-concern.html
The yield on the contract due in January 2012 fell two basis points, or 0.02 percentage point, to 11.13 percent, the lowest level since September, at 9:22 a.m. New York time. At 10.69 percent, the contracts due in January 2011 imply the central bank may keep its benchmark borrowing costs at 10.75 percent for the remaining three policy meetings this year.
A U.S. government report showed orders for durable goods increased in July less than economists forecast, sending yields on the 10-year U.S. Treasury notes to the lowest level in 19 months. In Europe, Ireland’s credit rating was cut one step by Standard & Poor’s yesterday to AA-.
“Meirelles is done with hiking,” said Ram Bala Chandran, a Latin America currency and rates analyst at Citigroup Inc. in New York. “Rates are lower everywhere, driven by global growth concern.”
The real was unchanged at 1.7705 per dollar today.
To contact the reporters on this story: Ye Xie in New York at yxie6@bloomberg.net
By - Aug 25, 2010 9:52 AM ET
http://www.bloomberg.com/news/2010-08-25/brazil-interest-rate-futures-drop-to-11-month-low-on-global-growth-concern.html
