The one-day interbank deposit futures rates (DI rates) in Brazil opened higher Monday, tracking the rise of the locally traded U.S. dollar and the yields of the U.S. Treasuries after new threats from United States President Donald Trump against Iran, triggering a new wave of trade tension.
In a report, Renascenia Corretora’s economic team points out that, despite the deceleration of inflation indicators in Brazil, the week starts with a negative international context, with most assets penalized by tensions over the trade war.
After criticizing the Federal Reserve’s stance on monetary tightening, Trump used Twitter to make threatening statements against the president of Iran, Hassan Rouhani. “Never, never threaten the United States again or you will suffer consequences as few in history have suffered before.”
In the face of the statements, which corroborate the unfolding of trade disputes involving the United States, the U.S. government’s 10-year T-Note yield, Treasuries, rose to around 2.91%.
The economic team at H.Commcor draws attention to the adjustment scenario of the DI rates, tracking the U.S. dollar.
Near the middle of the session, the January 2019 DI contract rate was at 6.73%, from 6.70% in the previous settlement, while the January 2020 DI rate was at 8.14%, from 8.07%. The January 2021 DI contract rate was at 9.14, from 9.05%.