BRAZIL: DI Rates Trade Mixed On Friday
The one-day interbank deposit futures rates (DI rates) in Brazil are trading mixed. The shorter maturities trade higher, while the longer ones fall tracking the locally traded U.S. dollar.
According to the chief economist of SulAm?rica Investimentos, Newton Rosa, the enthusiasm with the U.S. GDP for having grown less than expected has lost its breath, giving rise to a more rational approach that the rise of 4.1%, according to preliminary data, is still consistent and gives room for stronger actions by the Federal Reserve Bank.
The proximity of the meetings of the U.S. Fed and the Brazilian Central Bank (BC) monetary policy committee scheduled for next week also increases the degree of caution in the market.
Near the end of the session, the January 2019 DI contract rate was stable at 6.63%, from 6.625% in the previous settlement, while the January 2020 DI rate was at 7.92%, from 7.91%. The January 2021 DI contract rate was at 8.92, from 8.94%.