MARKETS: DI rates close higher as investors await Copom minutes

São Paulo, 11 - The one-day interbank deposit futures rates (DI rates) in Brazil ended higher as the locally traded locally traded U.S. dollar rises and investors await the release, tomorrow,...

São Paulo, 11 - The one-day interbank deposit futures rates (DI rates) in Brazil ended higher as the locally traded locally traded U.S. dollar rises and investors await the release, tomorrow, of the minutes of Brazil's Central Bank's Monetary Policy Committee (Copom) latest meeting. Investors also monitor risks from abroad, such as the trade war between Washington and Beijing and a new shutdown of the U.S. government. Traders say that the futures interest rates market keeps the recent trend to open rates, amid the absence of drivers that are relevant to the forward curve. "There is a lack of good news," says a foreign bank's treasury director. According to him, investors watch the developments around the US-China trade talks and negotiations between Republicans and Democrats, while in Brazil many economic agents are "a bit disappointed" with Jair Bolsonaro government's "lack of coordination." "The thing is that skepticism is the best definition of the general feeling of the financial market." "The Central Bank closed the door for the Selic to fall in the short term," says SulAmérica Investimentos' chief economist Newton Rosa. According to Santander, the Copom made clear in the statement that its strategy will be to keep the interest rate at the current level, "contrary to what some market players expected." For Rabobank's senior strategist in Brazil, Mauricio Oreng, the Copom can provide more details on the assessment of the scenario of risks to inflation and more clues about the next steps in driving the Selic. "Yet it seems quite natural to expect the Copom to reaffirm a guidance of rate stability for now, as indicated in the communiqué," he adds. The January 2020 DI rates closed at 6.505%, from 6.50% in the previous settlement. The January 2021 DI contract settled stable at 7.23%, from 7.21%, while the January 2023 contract ended at 8.34%, from 8.32%. The January 2025 contract was at 8.86%, from 8.85%. Olívia Bulla / Agência CMA Translation by Ricardo Gozzi http://www.agenciacma.com.br/esp/



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MARKETS: DI rates close higher as investors await Copom minutes

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