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Brazil is planning to issue sustainable bonds in the debt market once volatility subsides, according to Treasury Secretary Rogerio Ceron. The country's first issuance of environmental, social, and governance (ESG) bonds occurred in November, and Brazil aims to issue regular and ESG notes at least twice a year. Ceron stated that the government is committed to a balanced primary budget and is open to discussing spending. Additionally, Brazil has provided aid to the state of Rio Grande do Sul, which has been affected by floods, and the government has prepared measures to offset the cost of a payroll tax exemption. [Extracted from the article]

Brazil is planning to issue a second sale of sustainable bonds once market volatility subsides, according to Treasury Secretary Rogerio Ceron. The country's first issuance of environmental, social, and governance (ESG) bonds occurred in November, with subsequent record offerings in January. Ceron stated that the government remains committed to a balanced budget and is open to discussing spending. Additionally, Brazil has provided significant aid to the state of Rio Grande do Sul, which has been affected by severe flooding. [Extracted from the article]

Verde Asset Management, a Brazilian hedge fund known for its high returns, experienced its largest monthly decline in years, with its flagship fund falling 3.8% in April. The fund attributed the decline to changes in Brazil's fiscal target for 2025 and a global risk-off mood. As a result, Verde reduced its exposure to Brazilian stocks and eliminated bets on falling local rates. Despite this decline, the fund has had a significant return since its inception and currently manages about $4.3 billion. [Extracted from the article]

Estrada, who is currently chief operating officer of the Latin America financing group, will continue to head the region's investment-banking derivatives business, the New York-based company said in an internal memo Friday. (Bloomberg) -- Goldman Sachs Group Inc. named Cristina Estrada co-head of the investment-banking division in Brazil. [Extracted from the article]

(Bloomberg) -- Brazil's largest hedge-fund managers cut their commodity wagers as growing fears of a global economic downturn threaten the furious rally that took place in the first half of the year. Absolute Vertex FIC +1.93% in June; benchmark CDI rate +1.01% Link to letter Adam Capital Funds are long Brazil equities and inflation-linked bonds, neutral US stocks. [Extracted from the article]

(Bloomberg) -- Brazil's top hedge fund managers are piling into inflation-linked bonds, worried that the government's bid to reduce fuel prices will worsen the nation's fiscal outlook and end up keeping consumer prices high for longer. Adam Macro II FIC fund +0.26% in May; benchmark CDI rate +1.03% Link to letter Bahia Asset Management Fund is expecting two additional 50 basis-point rate hikes from Brazil's central bank at its next June and August meetings. [Extracted from the article]

"We should expect more inflation and, consequently, rates are set to rise", Vinicius Oliveira, a spot foreign-exchange trader at Banco da China Brasil, said before the Treasury department resignations. (Bloomberg) -- Rates traders are becoming increasingly skeptical that Brazilian officials can rein in skyrocketing inflation, with new spending plans adding to risks for the nation's currency and central bank market interventions failing to make much of an impact. While the Banco Central do Brasil has been among the biggest movers globally in terms of interest-rate hikes and acted directly in the foreign-exchange market, its currency interventions have been clearly flagged ahead of time, potentially blunting their effectiveness in stemming the real's decline. [Extracted from the article]

(Bloomberg) -- Brazil's local market for corporate debt is back in expansion mode after last year's wipeout. Not so in Brazil, where local bond issuance dropped 41% for the year and investors pulled money from credit funds for 11 straight months. [Extracted from the article]

Comments on 1990s interest in a series of early 20th century inflation-indexed Brazilian bonds. Issuance of the bearer bonds; Acquisition of bonds by emerging-markets specialist David De Wind; Court test of the legality of the Brazilian government's 1968 call on the bonds; Potential value.

QSuper buying Brazilian debt, inflation-linked bonds in U.S. Brad Holzberger, the 60-year old former army officer and chief money manager at QSuper Ltd., is buying Brazilian local currency bonds in addition to building positions in inflation-linked debt in the U.S., he said in an interview. [Extracted from the article]

The administration expects Congress this year to approve one of its key austerity measures, which is a cap on public spending, according to Meirelles, who himself ran the central bank under then-President Luiz Inacio Lula da Silva. Attribution Anna Edgerton: by reporter Vivianne Rodrigues: editor responsible Robert Jameson: editor Randall Woods: editor Mario Sergio Lima: assist. [Extracted from the article]

Country's local bonds have plunged 40% in past three years After Brazil saddled bond investors with losses of 34 percent in the past three years, the nation's debt market has become one of the most contentious battlegrounds between bulls and doomsayers. While policy makers probably won't reach their goal of slowing price increases to 4.5 percent in the near term, he favors Brazil's short-maturity notes and long-dated inflation-linked bonds. [Extracted from the article]

To contact the reporter on this story:Filipe Pacheco in Sao Paulo at fpacheco4@bloomberg.netTo contact the editors responsible for this story:Brendan Walsh at bwalsh8@bloomberg.netSebastian Boyd Attribution Filipe Pacheco: by reporter Sebastian Boyd: editor Brendan Walsh: editor responsible. [Extracted from the article]

Traders forecast higher rates as inflation outlook worsens Most traders in the interest-rate swaps market estimate the central bank will raise borrowing costs twice more this year. As a result, traders and the majority of analysts surveyed by Bloomberg forecast the central bank will keep the rate unchanged at Wednesday's meeting, which ends after 6 p.m. local time. [Extracted from the article]

The comments come the same day Brazil's central bank board said it must show determination to bring quickening inflation back to target by the end of 2016. Two-year breakeven rates, based on the difference in nominal and inflation-linked bonds, have increased 0.22 percentage point since the inflation data came out June 10 to. [Extracted from the article]

Brazil's electricity prices probably will increase this year as the government cuts back on subsidies, Energy Minister Eduardo Braga said. "Brazil needs lasting policies, policies that guarantee investments Petrobras has made, because that has to do with the issue of Petrobras's cash generation", Braga said. [Extracted from the article]

An interview with Paulo Valle, head of public debt operations at Brazil's National Treasury, is presented. When asked about the possibility that Brazil will access dollar bond markets, he explains the National Treasury's strategy on the external market. He discusses the possibility that Brazil will sell global bonds denominated in yen or euros. He also talks about foreign investor demand for inflation-linked domestic government bonds.

The article reports on the decision of Brazil not to have a fixed sovereign debt issuance target for the international market. It will fund the net $14.2 billion it requires through a real denominated debt issuance or with its foreign reserves. Treasury Secretary Carlos Kawall is expected to withdraw first from the market the high coupon global dollar bonds. An inflation-linked global real bond would do a little to help the country develop a fixed rate yield curve.