BRAZIL: BCB’s Campos Neto In US For Further Meetings At IMF
Apr-19 10:51
- Local media reports yesterday that the Finance Ministry is considering new measures to increase revenues helped a further decline in Brazil swap rates, with long-end yields down 12bp. Nonetheless, yields remain higher on the week, particularly at the front end as fiscal concerns have been in focus. After a notable move higher earlier in the week, USDBRL has remained rangebound around 5.25 in recent sessions. A bullish theme in remains intact, however, with focus on 5.3330 next.
- Today, BCB President Campos Neto remains in Washington, where he will have further appointments related to the IMF spring meetings. These will include two lectures that he will give in the afternoon and a meeting with investors, organised by Bank of America at 2200BST(1700ET). Separately, President Lula will meet with Chief of Staff Rui Costa and the Finance Ministry’s Executive Secretary Dario Durigan at 1300BST, ahead of other meetings in Brasilia during the day.
- On the data front, no macro releases are scheduled today. Next week, the BCB’s weekly Focus survey will be published as usual on Tuesday, while mid-month IPCA inflation data will be released on Friday.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: A Modest Further Rally With FOMC Ahead
Mar-20 10:50
- Cash Tsys rally a little further after the late open following a Japanese holiday.
- Yields are 1-1.5bps lower across the curve. The move has been aided by softer than expected UK CPI after yesterday’s CAD CPI miss, with the long-end still seeing support after yesterday’s strong 20Y auction.
- TYM4 at 110-08+ (+ 04) has continued its lift off Monday’s low of 109-24+, a move that probed the bear trigger at 109-25+ (Feb 23 low). Resistance is seen at 110-24 (20-day EMA).
- TY volumes are on the lower side at 245k, weighed by the holiday and likely to remain lackluster ahead of the FOMC decision.
- Fed: FOMC decision and SEP (1400ET), Powell’s press conference (1430ET)
- Data: Weekly MBA mortgage data (0700ET)
- Bill issuance: Tsy to sell $60bn 17-W Bills (1130ET)
EURIBOR OPTIONS: Call spread buyer
Mar-20 10:49
ERU4 96.75/97.12cs 1x2, bought for 2.75 in 5k.
EQUITIES: EU Bank put buyer
Mar-20 10:48
SX7E (19th April) 120p, bought for 0.20 in 7.8k.
