BRAZIL: DI Rates End Mixed

(RTTNews) - The one-day interbank deposit futures rates (DI rates) in Brazil ended mixed Friday, after Pedro Parente's resignation as Petrobras' CEO. The shorter maturities went through a correction, returning premiums, as a steepening pressed the long end of the curve.

"Pedro Parente leaves Petrobras and investors deal with greater political interference, in a weakened government context," said Ignacio Crespo, an economist at Guide Investimentos. For him, the news raised local uncertainties and weighed on the domestic market.

In addition, the future interest rate market was influenced by the behavior of the locally traded U.S. dollar, which surpassed the mark of R$ 3.75, and by the auction of government bonds conducted by the Treasury. In the operation, the agency did not accept any offer. "After a few days of much stress, the Treasury doubled the lot offered and the market did not want to sell," a fixed-income operator said.

The January 2019 DI contract rate was at 6.745%, from 6.795% at the previous session, while the January 2020 DI rate ended at 7.67%, from 7.77%. The January 2021 DI contract rate was at 8.81%, from 8.89%.