BRAZIL: Local Assets Underperforming As Fiscal Risks Continue To Weigh
Apr-30 15:34
- Local media are reporting today on the difficulty Finance Minister Haddad is having in pushing through his fiscal agenda amidst ongoing tensions with congress. As noted previously, the Senate has filed an appeal against the recent Supreme Court ruling, which suspended some sections of the law that extended the payroll tax exemption, and Haddad has said that he’s been trying to talk to mayors about the tax exemption since October.
- Meanwhile, the Senate is due to vote today on the renewal of a benefit for the events sector. It is also due to debate soon the framework which allows the government to increase spending further. O Globo report that the government may need an extra BRL 65bn next year to close its accounts.
- Against this challenging backdrop, Brazilian assets are underperforming today, with USDBRL currently up by over 1% and DI swap rates rising by another 15bp or more across much of the curve. Data wise, March Federal debt data are due at 1830BST.
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MNI: POWELL SAYS PCE INFLATION CAME IN LINE WITH EXPECTATIONS
Mar-29 15:26
- MNI: POWELL SAYS PCE INFLATION CAME IN LINE WITH EXPECTATIONS
MNI: US FEB PERSONAL INCOME +0.3%; NOM PCE +0.8%
Mar-29 12:30
- MNI: US FEB PERSONAL INCOME +0.3%; NOM PCE +0.8%
- US FEB PCE PRICE INDEX +0.3%; +2.5% Y/Y
- US FEB CORE PCE PRICE INDEX +0.3%; +2.8% Y/Y
- US FEB UNROUNDED PCE PRICE INDEX +0.333%; CORE +0.261%
FRANCE AUCTION PREVIEW: On offer next week
Mar-29 10:32
E11.0-12.5bln of LT OATs on Thursday 4 April (a slightly smaller auction than in February or March):
- the 3.50% Nov-33 OAT (ISIN: FR001400L834)
- the 3.25% May-55 OAT (ISIN: FR001400OHF4)
- the 4.00% Apr-60 OAT (ISIN: FR0010870956)
- the 1.75% Jun-39 Green OAT (ISIN: FR0013234333)
Up to E7.2bln of 13/22/24/51-week BTFs on offer Tuesday 2 April:
- E3.1-3.5bln of the new 13-week Jul 3, 2024 BTF
- E0.1-0.5bln of the 22-week Sep 4, 2024 BTF
- E1.3-1.7bln of the 24-week Sep 18, 2024 BTF
- E1.1-1.5bln of the 51-week Mar 26, 2025 BTF
