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Brazil's first ESG sovereign offering of $2 billion priced a seven-year note at a 6.5% yield, which the finance minister said is close to investment grade. Hopes are rising that Finance Minister Haddad can resist pressure to soften the fiscal rule, which targets a zero primary deficit next year.
The real is expected to perform adequately in the short term.
Fiscal credibility supports the real and foreign inflows, which keeps Brazilian export pricing stable; the effect on feed commodity prices is limited.
fxmag.comING EconomicsNov 16, 2023After 92 past neutral macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
