Market roundup: Fiscal risks raise interests on Brazilian bonds

Bolsonaro’s attempt to break through the fiscal ceiling so as to increase social spending has increased Brazil’s borrowing costs

fiscal bonds borrowing costs
Photo: Shutterstock

🔔 The dashboard: Brazil’s benchmark stock index Ibovespa was up by 1.35 percent this week. Meanwhile, the Brazilian Real gained 1.40 percent against the U.S. Dollar this week. 

  • Biggest gains: Via (retail), +28.5 percent.
  • Biggest drops: Gol (tourism), -7.73 percent.

Interest on Brazilian bonds at its highest since 2016 

House Speaker Arthur Lira, an ally of President Jair Bolsonaro, postponed a floor vote on a constitutional amendment bill that would place Brazil under a state of emergency. The proposal would allow the president BRL 41.2 billion (USD 7.7 billion) in extra spending on stimulus programs and social policies. It seems though...

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