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The yield on Brazil’s 10-year bond fell back below 14%, retreating from an eleven‑month high as aggressive domestic liquidity actions and a global pullback in sovereign yields offset a sharp repricing of risk. Earlier in March, global yields had spiked on worries that a protracted conflict in the Middle East and potential energy supply disruptions would drive inflation higher. The market tone shifted, however, as investors began to focus more on growth risks than on immediate inflation pressures.
In the United States, the 10-year Treasury yield eased from an eight‑month peak amid signs of a possible ceasefire and the reopening of the Strait of Hormuz, developments that helped push oil prices lower. Domestically, Brazil’s National Treasury conducted a record R$49.1 billion bond buyback to stabilize the DI futures curve after yields moved above 14.3%, following the Central Bank’s decision to cut the Selic rate to 14.75% and withdraw its forward guidance.
