Brazil Future Yields Snap Six-Day Drop Before Meeting Minutes

Yields on interest-rate futures contracts were unchanged, snapping six days of declines, on speculation minutes from last week’s central bank policy meeting will indicate that the pace of reductions in borrowing costs will slow.

Yields on the interest-rate futures contract due in January 2014 held at 8.23 percent at 10:12 a.m. in Sao Paulo after earlier rising as much as seven basis points, or 0.07 percentage point, to 8.30 percent. The central bank is scheduled to release minutes from last week’s rate decision on June 8.

“The central bank could show in the minutes that the idea isn’t to cut interest rates more deeply for now,” said Luis Otavio De Souza Leal, chief economist at Banco ABC Brasil SA, in a phone interview from Sao Paulo.

The real appreciated 0.2 percent to 2.0369 per U.S. dollar.

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

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