* Brazil to add liquidity to dollar-denominated benchmarks
* Aims to consolidate long-end of interest-rate curve
BRASILIA, Jan 21 (Reuters) - Brazil's government will make it a priority in 2011 to build a yield curve for its real-denominated global bonds, Deputy Treasury Secretary Paulo Valle said on Friday.
The move is part of a plan to build up a real-denominated debt market abroad, providing an alternative to capital inflows into Brazil, which have strengthened the local currency at the expense of local exporters.
With greater liquidity for the securities abroad, Brazilian corporate issuers would also be able to tap the market in reais BRBY, reducing their currency risk, Valle added.
'This year our priority will be to build a real-denominated yield curve in markets abroad, with the possible creation of new benchmarks between 10-year and 30-year maturities,' Valle said in the Thomson Reuters Trading Brazil chatroom.
He said the Treasury would also seek to add liquidity for its 10-year and 30-year dollar-denominated global bonds.
Brazil's National Treasury would also continue its strategy of building the long end of the interest rate curve, Valle said.
'The Treasury's main strategy is to create an interest rate curve with good liquidity to consolidate the long-end of the curve,' Vale said. (Reporting by Paula Laier; Writing by Elzio Barreto and Ana Nicolaci da Costa; Editing by Leslie Adler)
UPDATE 1-Brazil focused on real-denominated yield curve
About Me
- Waldemar Jezler
- For over 30 years, Brazilian-American investment banker Waldemar Jezler has worked in the finance sector. Jezler earned his Bachelor's degree in Civil Engineering from the University of São Paulo in Brazil and then went on to attend Harvard Business School for his MBA. While at Harvard, Jezler was highly involved in extracurricular activities, including a term as President of the Ibero American Club.