Brazil DI Rates Turn Negative as Flávio Bolsonaro Poll Gains Ground
Future Brazilian short-term rates fell to 13.61% for January 2028 after an AtlasIntel/Bloomberg poll showed Senator Flávio Bolsonaro narrowly edging out President Lula in a hypothetical second-round matchup.
Brazilian Deposit Interfinance (DI) rates turned negative later Monday afternoon as investors processed new election polling data. A study by AtlasIntel and Bloomberg indicated Senator Flávio Bolsonaro held 46.4% of second-round voting intentions compared to Luiz Inácio Lula da Silva's 46.2%. This shift drove the one-month DI rate down to 13.61% from 13.63% at the day's open. Long-term rates also retreated, with the January 2035 benchmark falling to 14.13%. Earlier in the session, rates initially climbed alongside global yields, but market expectations for a closer race between the candidates caused a reversal. These movements contrasted with international bond markets where US Treasury yields rose and Brent crude traded near $107 per barrel.
