Charts Of The Day: Another Vote Of Confidence For Brazil

A renewed boost of confidence in Brazil's economy has seen the government's US$ Global 2027 bond rally in recent trading, with the yield on the instrument compressing towards 6.1% on March 1. Currently coming up against technical resistance, further yield compression may be difficult to come by. That said, should a break of the current resistance level occur, we would look for a move towards 5.8% for the bond, at which point pressure for a reversal would gain the upper hand, in our view.

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