Lula Rival Surge Sparks Rally as Election Nears: Brazil Credit
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A surge by opposition candidate Jose Serra in presidential election polls is sparking the biggest rally in Brazilian bonds in two months.
Yields on real-denominated government bonds due in 2014 tumbled 26 basis points, or 0.26 percentage point, since yesterday, the most since August, after a Sensus poll showed Serra cut into a 14-percentage point gap with Dilma Rousseff ahead of an Oct. 31 runoff vote. Yields fell 34 basis points this week to 11.57 percent, the biggest weekly rally in almost two months.