Lula’s Tax Fuels Rally in Overseas Real Bonds: Brazil Credit
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Brazil may sell real-linked bonds in the international market for the first time in three years as a tax increase on foreigners’ purchases in the local debt market shifts demand overseas.
The government’s international real-linked bonds due in 2016 are rising faster than its local bonds with similar maturity since the tariff change on Oct. 4, driving the yield difference to a seven-month high of 372 basis points, or 3.72 percentage points. The gap was 214 points on July 13, according to data compiled by Bloomberg.