Brazil Interest Futures Rise on Central Bank Signal

Brazil’s interest-rate futures yields on contracts due before July 2012 rose as the central bank’s signal that it will raise rates to curb price increases offset a report showing inflation quickened less than expected.

Investors increased bets the central bank will raise its benchmark Selic interest rate, with the yield on the contract due July 2011 adding 6 basis points to 11.65 percent by 6:38 a.m. New York time, the highest intraday level since Dec. 8. On the agreement due April, the yield advanced 4 basis points to 11.15 percent.

Panamericano Posts Biggest Two-Day Drop Since Probe After Reserves Lifted

Banco Cruzeiro do Sul SA sank 2.3 percent to 14.75 reais. Moody’s Investors Service cut their outlook on their Ba ratings to negative from stable for four Brazilian banks -- Banco BMG SA, Banco Cruzeiro do Sul, Banco Bonsucesso SA and Banco Schahin SA. Profits may be hurt after capital requirements were increased for long-term vehicle financing and loans deducted from payroll income, Moody’s wrote.

Investors To Pay $1.8B For 18.65% Stake In Brazil's BTG Pactual

SAO PAULO (Dow Jones)--A group of investors including the sovereign wealth funds of China, Singapore and Abu Dhabi have agreed to pay $1.8 billion for an 18.65% stake in Brazilian investment bank BTG Pactual, the bank said Monday in a statement.