Brazil: 10-Year Bond Yield Pulls Back from 11-Month Highs.

The Brazilian 10-year bond yield fell below 14%, retreating from an eleven-month high as a combination of aggressive domestic liquidity measures and a broader global retreat in sovereign yields countered a violent repricing of risk. While global yields had surged in March amid fears of a prolonged conflict in the Middle East and energy supply shocks, the market pivoted as investors began prioritizing growth concerns over immediate inflationary fears. The US 10-year Treasury yield retreated from an eight-month high as signs of a potential ceasefire and the reopening of the Strait of Hormuz helped pull oil prices lower. Locally the Brazilian National Treasury executed a record R$49.1 billion buyback to stabilize the DI futures curve after yields exceeded 14.3% following the Central Bank’s decision to cut the Selic rate to 14.75% while removing forward guidance.