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Brazilian government bonds could become “oasis” for some investors, analysts called CNBC, especially as a fenter of global trading voltage.
The Fair of the greatest economy of Latin America, such as prosecutorial policies and inflation vision, more than a global feeling, said Viktor Zvabok, investment directors in the market emerging in the Abrdn market.
Brazil’s 10-year-old government bond performance is currently 15.267%, marking a leap of more than 40% a year ago.
“Brazil offers one of the most real rates of all government bond markets,” Zvabok said.
Its benefits are significantly higher compared to other Emerging Market Committees. For example, the yields of the 10-year government bond of Chile are about 5.939%, with 9.487% of the 10-year government bond of Mexico.
The cocktail mix of the sticky view of Brazil and the uncertainty of the Brazilian fiscal view is the major driver for the high return of the country, especially in recent months, the monetary supervisors said to CNBC.
“In the last five years, Brazil has been at the bottom of the Lower League table, a little before Chile and Colombia,” Gustavo Modeiros said, Ashmore Group research manager, dedicated to the investment management company dedicated to emerging markets. Medeiros added Uruguay and Mexico He offered the best returns in the last five years.
Brazil, however, has now been ready to eliminate classmates from his region.
“It is a local market for one year (Brazil). The bond returns from 100% to 16%.
A great bonus market
The Brazilian bonus market is quite unique, is the action of prices that prevails with local money, Abrdn’s Zvabok said.
“This helps high risk premium and bond market and moving currency moves,” he added.
“Because of this idiosynvenous nature, it may have the Central Bank of Brazilian monetary policy and diverted and diverted and diverted from the rates of the classmates of the Regional Fellow,” Zvabok said.
Luiz Inácio Lula since Silva refund In January 2023, the country’s economy, the economy of the country is browsing a complex challenge and opportunity, such as the high inflation rate in the previous administration.
Lula has started high-expenditure programs, which raised questions about sustainability Public debt of the country. Brazil’s public debt today as a percentage of gross domestic product (GDP) It is 76.1%.
By adding his idiosyncrasies, Marko supervisors said Brazil is quite isolated from global trade accidents when they gave a moderate trade connection with the US
The Luiz Pasable Lula in Brazil is the summit of Silva Mercosur.
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The threats of US trade policies have a negative effect on the market, but Brazil will not lead our trade war in the United States of Donald Trump, Noah Wise, Global Investment General Income Director.
Brazilian assets have seen revitalization in 2025 by strengthening the currency of more than 4% from the beginning. Brazilian stock exchange has also made progress, Ibovespa has increased by more than 12%, according to Lega data.
The wise said the Brazilian government’s bond has entered its portfolio in recent months in recent months, after reducing the Brazilian government after 50% in 2024, when the fiscal state of the country worsened.
Market spotlights are rates and geopolitical, Brazilian assets are great and relatively low opportunities to attend U.S. commercial policies.
A ‘oasis’ for some investors?
The Brazilian bond market is proving to be “full” other bond markets, George Efstathopoulos said, Director of Fidelity International Portfolio.
“Brazilian local currency bonds could be very well for Brazil-based investors, especially those who do not have to worry about FX dangers,” Efstathopopoulos said.
Local investors can achieve high-term nominal profits, but also competitive returns, Efstathopoulos told CNBC. However, for foreign investors, the risk of foreign exchange is genuine, especially giving great amortization last year, the portfolio director added.
“We think the awards compensate properly at risk,” said Zolt Papp, specialized investments in JPMorgan Asset Management due to the debt emerging in the market.
“Obtain access to the Brazilian government bond market through actively managed funds, investors provide diversification of refund sources and active risk management,” Pappek said.
