BRAZIL: DI Rates Close Lower Tracking USD, Auctions

(RTTNews) - The one-day interbank deposit futures rates (DI rates) in Brazil ended lower Monday, tracking the decline of the locally traded U.S. dollar, amid the joint action of the Brazilian Central Bank and the National Treasury.

Investors showed relief over the Supreme Court's decision to lift the trial of former President Lula's plea for freedom while waiting for the release the minutes of June's meeting of the Brazilian Central Bank's Monetary Policy Committee (Copom), on Tuesday, and the Quarterly Inflation Report, on Thursday.

Fixed-income traders said that the Central Bank's and Treasury's to keep joint intervention in the domestic market in order to provide liquidity and reduce business instability has eased the pressure despite the negative external environment. "That brought security," said a derivative manager.

The January 2019 DI contract rate was at 6.995%, from 7.035% in the previous settlement, while the January 2020 DI rate ended at 8.54%, from 8.66%. The January 2021 DI contract rate was at 9.54%, from 9.72%.