Brazilian Dollar Bond Slump Deepens as S&P Lowers Rating Outlook

Brazil’s benchmark dollar bonds fell after Standard & Poor’s cut the government’s credit rating outlook to negative amid an economic slump that’s threatening to drive up debt levels.

The nation’s $2.2 billion of bonds due 2023 fell 0.19 cent to 92.40 cents on the dollar at 12:10 p.m. in New York, the lowest price on a closing basis since the notes were issued in September, according to data compiled by Bloomberg. Yields rose 3 basis points, or 0.03 percentage point, to 3.57 percent, extending their increase over the past five days to six basis points, the fifth straight weekly jump.