Brazil DI futures drop up to 124 basis points

The Brazilian interest rate futures curve fell sharply across all maturities on Monday following the first-round presidential election results. The outcome confirmed a runoff between Senator Flávio Bolsonaro, who led with 47.03% of valid votes, and President Luiz Inácio Lula da Silva, who took 45.16%. The second round is scheduled for October 25, 2026.

Around 9:40 a.m. Brasília time, the Interbank Deposit (DI) contract for January 2027 fell 124 basis points to 13.386%, down from 13.510% at the previous close. The January 2029 DI contract dropped 86 basis points from its prior close to an intraday low of 12.830%. The long-term DI contract for January 2036 declined 9 basis points, also touching an intraday low of 13.185%, compared with 14.085% at the close on Friday, October 2, 2026.

The Brazilian bond market moved in contrast to US Treasuries, which traded at multi-decade highs alongside oil prices above $100 per barrel. Around 9:50 a.m. Brasília time, the two-year US Treasury yield stood unchanged at 4.825%. The 10-year US Treasury yield rose to 5.303%, up from 5.277% on Friday, October 2, 2026.