2018.07.2108:58:00UTC+00BRAZIL: DI Rates Trade Lower Amid Signs Of Centrist Support To Alckmin

The one-day interbank deposit futures rates (DI rates) in Brazil traded lower Friday after centrist parties had signaled support to the pro-market PSDB pre-candidate Geraldo Alckmin, bringing relief to the political scene.

The support of centrist parties to Alckmin pleased the market since there was a possibility that they could support the center-left PDT candidate, Ciro Gomes, considered against reforms. In addition, it will bring more minutes of TV propaganda to Alckmin, which can help his candidacy.

Another positive news for DI rates was the confirmation of lower inflation. "The deceleration of the IPCA-15 confirmed the prediction that the truckers' strike would impact activity and inflation," said Advanced Corretora's trader Alessandro Faganello.

Near the end of the session, the January 2019 DI contract rate was at 6.695%, from 6.735 in the previous settlement, while the January 2020 DI rate was at 8.04%, from 8.13%. The January 2021 DI contract rate was at 9.04, from 9.17%.