Brazilian swap rates declined as Europe’s debt crisis and slowing growth in China overshadowed data showing analysts covering Latin America’s largest economy raised their 2012 inflation forecast for a second week.
Yields on the futures contract due in January 2014 fell six basis points, or 0.07 percentage point, to 7.69 percent at 9:35 a.m. in Sao Paulo. The real depreciated 1 percent to 2.0436 per U.S. dollar, its second day of declines.
Commodities tumbled as this week’s visit by Greece’s creditors rekindled concern the euro currency union will splinter and after officials in China, Brazil’s biggest trading partner, said growth may cool to 7.4 percent this quarter. Consumer prices in Latin America’s biggest economy will rise 4.92 percent this year, according to a central bank survey of about 100 analysts published today, up from last week’s 4.87 percent median estimate.
“People are worried about the situation with the euro and the question of China is weighing on commodities,” Luis Otavio de Souza Leal, chief economist at Banco ABC Brasil SA, said by phone from Sao Paulo. “Rate futures are following the external market.”
Central bank President Alexandre Tombini will hold a conference call with international media to comment on Brazil’s economic performance at 12 p.m. local time.
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