Lula Gains as Greenspan ‘Conundrum’ Cuts Yields: Brazil Credit
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The biggest foreign purchases of Brazilian local bonds in three years are pushing longer-term borrowing costs below yields on two-year debt for the first time since October 2008.
Yields on fixed-rate government bonds due in 2017 have declined 101 basis points, or 1.01 percentage point, in the past three months to 11.51 percent. The plunge in 2017 yields put them as much as eight basis points below yields on notes maturing in 2012 last week. A year ago, longer bonds yielded 169 basis points more than the shorter-term securities.