Brazil's Swaps Reveal Concerns About Political Woes and Slowing Inflation

Investors’ concerns about Brazil’s political turmoil are growing, according to the interest-rate swap futures curve -- called DIs -- which recently reached the steepest level in a year. The short end has fallen on expectations the central bank will keep cutting rates amid slowing inflation, while uncertainty about the success of economic reforms and the election in 2018 has held the long end down.

— With assistance by Davison Santana, and Srinivasan Sivabalan

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