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28.07.201808:54:00UTC+00BRAZIL: DI Rates Close Lower Friday Tracking USD

The one-day interbank deposit futures rates (DI rates) in Brazil ended lower Friday, tracking the locally traded U.S. dollar.

While the U.S. economy grew less than forecast by the market in the second quarter, despite having recorded strong performance, in domestic politics, Geraldo Alckmin's improvement in an election poll also boosted the domestic market.

Quantitas' fixed income analyst Matheus Gallina pointed out that the longest end of the curve was the one that lost strength throughout the session, "falling less" in the second part of the business compared to the morning move.

In addition to U.S. GDP, Gallina added that the policy left the mood of the market more positive after XP Investimentos-Ipespe's voting intention survey pointed to the growth of pre-candidate Geraldo Alckmin (PSDB).

The shorter maturities are showing little swing, being accommodated over the previous closings.

About Selic rate, the economist at Renascen?a Corretora, Cesar Garritano, said that the rate is expected to remain unchanged at 6.50% per year.

The January 2019 DI contract rate closed at 6.62%, from 6.625% in the previous settlement, while the January 2020 DI rate was at 7.91%, from 7.92%. The January 2021 DI contract rate settled at 8.90%, from 8.94%.



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