Brazilian government bonds are expected to open stronger on Monday as investors reassess the country’s fiscal outlook following Flavio Bolsonaro’s first-round lead over President Luiz Inacio Lula da Silva. Bolsonaro received 47.03% of valid votes, compared with Lula’s 45.16%, sending the election to a runoff on October 25. The result has strengthened expectations that a Bolsonaro administration could pursue tighter control of public spending and measures aimed at improving Brazil’s deteriorating fiscal position. Those expectations may support government debt and put downward pressure on yields, although investors are likely to remain cautious given the closely contested race. The 10-year government bond yield rose for a second consecutive session on Friday to 14.3%, moving further from its three-and-a-half-month low of 14.045% recorded on Wednesday.