Brazil’s 10-year government bond yield edged down to 14.4% in late June after the release of the minutes from the latest Copom meeting, in which the benchmark Selic rate was cut by 25 basis points to 14.25% per year. The view that Copom left the door open for further Selic cuts helped ease the Brazilian yield curve. Still, the minutes struck a slightly more hawkish tone than the initial statement, explicitly describing the inflation risk balance as asymmetric and tilted to the upside. Meanwhile, the US Federal Reserve adopted a more hawkish stance at its latest meeting, with policymakers signaling additional rate hikes by December. The shift led investors to scale back expectations for monetary easing, limiting the decline in bond yields.