The 10-year Brazilian government yield fell below 13.5%, reaching a nearly one-year low as declines in US Treasury yields reduced the global risk free anchor and allowed emerging market long rates to compress while investors chase higher carry. Domestically the central bank’s Selic remains at a historically high 15% and officials have signalled a prolonged pause with any easing likely to be gradual, a mix that preserves a wide policy cushion and strengthens the appeal of longer-dated Brazilian paper to carry-oriented portfolios. At the same time, softer financing needs and more benign inflation expectations have eased future policy and sovereign funding risk, with the Focus bulletin trimming 2025 IPCA forecasts and October foreign direct investment comfortably covering that month’s current account deficit, a combination that trims the term premium.