The 10-year Brazilian government yield fell to about 13.9% as markets repriced a lower external risk premium and a softer near-term policy outlook. A thaw in US–China trade rhetoric reduced the probability of a sudden hit to commodity exports and the current account, narrowing risk premiums. At the same time, weaker global growth signals and a slide in US Treasury yields pushed global long rates lower. Domestically, cooler inflation prints strengthened the dovish case at the central bank and trimmed inflation risk priced into the curve. Brazil’s still-elevated real policy rate preserved carry appeal, drawing renewed foreign duration demand and compressing yields further.