Brazilian DI futures closed lower on Monday, tracking a surge in global risk appetite following the announcement of a ceasefire between the United States and Iran.
The decline in Brazil’s benchmark interest rate contracts reflects a broader market shift away from safe-haven assets as geopolitical tensions in the Middle East eased.
5% threshold as investors absorbed the news of the de-escalation.
The move in Brazilian rates mirrors action in global bond markets, where US Treasury yields retreated sharply.
The benchmark 10-year note slipped below the 4.5% threshold as investors absorbed the news of the de-escalation.
The halt in hostilities, which followed a weekend of military strikes that had heightened regional fears, has removed a key source of uncertainty for global capital flows.
With the immediate threat of expanded conflict diminished, markets are repricing the risk premium embedded in emerging market assets.