BRAZIL: Tebet Argues That if Rates Not Cut in August, BCB Governor Must be Called
- Brazil's planning minister Tebet states that the BCB minutes released earlier today recognize that the economy is on the right path. Tebet adds that if rates are not cut in August, the BCB governor must be called - concluding that the minutes now seem different to the earlier policy statement.
- The Tebet comments follow the publication of the BCB minutes earlier today, at which the bank board stated that they see services and core CPI as slowly decelerating and signalled that a majority of the BCB board were in favour of signalling the possibility of an August rate cut.
- Earlier today (after the publication of the minutes), JPM revised their BCB view, seeing a 25bps cut in August, with a 50bps rate at the subsequent meeting. They had previously seen September as the first rate cut in Brazil.
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US: Debt Ceiling Deal Has Been Reached
NY Times reported negotiators reached a deal "in principle to raise the debt limit for two years while cutting and capping some government spending over the same period, a breakthrough after a marathon set of crisis talks that has brought the nation within days of its first default in history, three people familiar with the agreement said."
JGB TECHS: (M3) Corrects Lower
- RES 3: 151.26 - High Mar 3 2022
- RES 2: 149.75/150.81 - High Nov 11 / High Aug 5 2022
- RES 1: 149.53 High Mar 22
- PRICE: 148.53 @ 16:25 BST May 26
- SUP 1: 147.31/27 - 50-day EMA / Low Apr 18
- SUP 2: 145.80/144.73 - Low Mar 13 / Low Feb 13
- SUP 3: 144.15 - Low Jan 13
JGBs slid sharply Thursday, as hawkish Ueda comments prompted a correction. The bounce Friday helped stall any more protracted pullback, although the gap with next resistance at 149.17 remains. The strong recovery from 147.27, the Apr 18 low confirms the corrective nature of the recent pullback, keeping medium-term attention on 149.53, the Mar 22 high and the bull trigger. A break of this level would confirm a resumption of the uptrend. To the downside, the 50-dma provides support at 147.31, just above the Apr 18 low.
MNI: TREASURY GENERAL ACCOUNT $38.8B MAY 25 VS $49.5B PREV DAY
- MNI: TREASURY GENERAL ACCOUNT $38.8B MAY 25 VS $49.5B PREV DAY
