Brazil Rate-Futures Yields Fall to Record on Shrinking Industry

Yields on Brazilian interest-rate futures contracts dropped to a record low on speculation the central bank will deepen cuts in borrowing costs after a report showed industrial production fell more than economists forecast.

Yields on the futures contract due in January 2014 fell two basis points, or 0.02 percentage point, to 7.82 percent in Sao Paulo after touching a record low 7.79 percent. The real snapped a two-day gain, depreciating 1.5 percent to 2.0155 per U.S. dollar, the biggest loss in almost two weeks.