Brazilian government bonds rose after the Treasury canceled auctions of fixed-rate and zero-coupon bonds scheduled for tomorrow, citing market conditions.
Yields on local bonds maturing in 2017 dropped six basis points, or 0.06 percentage point, to 12.92 percent at 10:14 a.m. in Sao Paulo after increasing on Feb. 3 to a four-year high. The real depreciated 0.1 percent to 2.4074 per U.S. dollar after gaining 1.4 percent yesterday.
“The market is reacting calmly and sees that the Treasury is not desperate to refinance its debt,” Ricardo Ramos, trader at Icap do Brasil in Sao Paulo, said in a phone interview.
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