Brazilian Treasury bond yields rise following Copom minutes

Yields on Brazilian government bonds traded via Tesouro Direto moved higher on Tuesday (22), compared with Monday's close (21). The increase was concentrated in fixed-rate notes and longer-term inflation-linked papers following the publication of the central bank's Copom meeting minutes.

Among fixed-rate debt, the Tesouro Prefixado 2029 yield rose 3 basis points from 13.75% to 13.78% per year. The Tesouro Prefixado 2032 posted the largest gain in the group, advancing 5 basis points from 14.07% to 14.12%. The Tesouro Prefixado with semiannual coupons maturing in 2037 rose 4 basis points from 14.11% to 14.15%.

Inflation-linked securities also traded mostly higher. The Tesouro IPCA+ 2040 moved from IPCA plus 7.31% to IPCA plus 7.35%, while the 2050 maturity rose from 7.18% to 7.21%. In contrast, the Tesouro IPCA+ 2032 was the main exception, with its real rate edging down from 7.64% to 7.63%.

The upward move partly reversed a prior decline, though rates remained below the highs reached on Thursday (17), when market volatility followed the announced Bolsa Família adjustment. On that day, the 2032 fixed-rate paper reached 14.34% and the 2037 coupon bond touched 14.39%.