Brazil Rate Futures Yields Fall as Rousseff May Seek Selic Cut
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Brazilian short-term interest-rate futures yields declined for the first time in a week and the real weakened on speculation President-elect Dilma Rousseff will pressure the central bank to lower borrowing costs next year.
The yield on the contract due January 2012, the most traded in Sao Paulo, dropped five basis points, or 0.05 percentage point, to 11.42 percent at 4 p.m. New York time, while contracts due in 2017 and 2021 jumped on expectations policy makers will be forced to raise rates later to curb inflation. The real fell for a second day, losing 1.2 percent to 1.7003 per dollar.