Brazil’s Swap Rates Rise as Inflation Accelerates; Real Climbs
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Brazil’s swap rates rose the most in six months, reversing yesterday’s plunge, as inflation unexpectedly accelerated and central bank President Alexandre Tombini reiterated that policy makers will keep borrowing costs stable for a prolonged period.
Swap rates on contracts due in January 2014 climbed 13 basis points, or 0.13 percentage point, to 7 percent at the close in Sao Paulo, the biggest increase since June. They dropped 23 basis points yesterday, the most since May. The real gained for a fifth straight day, appreciating 0.1 percent to