Brazil Rate Futures Rise as Europe Debt View Outweighs Inflation

Yields on most Brazilian interest- rate futures contracts rose as speculation Italy will be able to prevent the European debt crisis from worsening spurred global growth optimism and outweighed data showing inflation slowed in October.

Yields on the futures contract due in January 2013 rose one basis point, or 0.01 percentage point, to 10.17 percent at 10:06 a.m. in Sao Paulo.

Brazil’s wholesale and consumer prices increased 0.4 percent in October, down from a 0.75 percent increase in September, the Getulio Vargas Foundation said today. The increase was less than the 0.42 percent median forecast of 32 economists surveyed by Bloomberg. Global stocks and commodities gained as Italian lawmakers prepared to vote on Prime Minister Silvio Berlusconi’s budget to trim debt and bring down the nation’s record borrowing costs.

“The markets are in a wait-and-see mood” before the budget vote in Italy, said Luciano Rostagno, chief strategist at Banco West LB in São Paulo.

The real fell 0.1 percent to 1.7494 per dollar, from 1.7477 yesterday.

To contact the reporters on this story: {Josue Leonel} in Sao Paulo at jleonel@bloomberg.net; {Gabrielle Coppola} in Sao Paulo at gcoppola@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.