Overnight Rate
Embratel, based in Rio de Janeiro, sold three-year bonds linked to the country’s overnight interbank rate on Oct. 8. With that rate trading at 10.64 percent yesterday, the bonds yield about 11 percent. By comparison, government floating-rate bonds due in 2013 pay yields in line with the overnight rate while its fixed-rate securities yield 11.82 percent, according to data compiled by Bloomberg.
Central bankers left their overnight rate target at 10.75 percent at a policy meeting yesterday after raising it 200 basis points, or 2 percentage points, from a record low earlier in the year to prevent the expansion from sparking a surge in inflation. Brazil’s benchmark target compares with rates of no more than 1 percent in the U.S., Europe and Japan.
Yields on Brazil’s interbank rate futures contract due in January 2012 rose four basis points to 11.31 percent today at 11:21 a.m. New York time.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
