Brazil's Interest-Rate Futures Fall on Speculation Borrowing Costs on Hold

Yields on Brazil’s interest-rate futures contracts fell on speculation the central bank will leave borrowing costs unchanged for the remainder of the year.

The yield on the contract due in January 2012 fell four basis points, or 0.04 percentage point, to 11.30 percent at 9:12 a.m. New York time.

“The central bank has already told the market it’s not going to hike at least until January,” said Pedro Tuesta, a senior economist for Latin America at 4Cast Inc. in Washington. “The market has accepted that there’s no need to change the rate,” he said in a telephone interview.

The real gained 0.1 percent to 1.7242 per U.S. dollar, from 1.7267 on Sept. 6.

-- Editor: Glenn J. Kalinoski

To contact the reporters on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.net

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email