Brazilian interbank deposit rates declined on Tuesday as U.S. Treasury yields and Brent crude oil prices retreated, tracking broader market sentiment.
The DI rate for January 2028 closed at 13.80%, down 8 basis points from Monday’s 13.883%, while the DI for January 2035 fell 7 bps to 14.44%. The benchmark Selic rate remains at 14.00%, according to B3 pricing data.
U.S. 10-year Treasury yields eased 7 bps to 4.637% by 16:37 GMT, contributing to the downward pressure on global rates. Brent crude oil dropped below $90 per barrel, falling to $85.96, a decline of 5.06% on the session.
The retreat in oil prices followed geopolitical developments involving the Strait of Hormuz, through which roughly 20% of globally traded oil and gas flows. Iran described U.S. sanctions as illegal and proposed a joint temporary navigation corridor with Oman, alongside plans to clear mines from the strait.
In domestic policy signals, options pricing on B3 ahead of Friday’s data indicated an 86% probability of a 25-basis-point Selic rate cut at the September Copom meeting, versus a 14.9% chance the rate would be held. For the November meeting, expectations were split between a 25-bps cut (42.1%) and a hold (40.1%).
Brazil’s tax revenue for July rose 8.97% in real terms year-over-year to R$289.346 billion, marking the highest July collection since the National Treasury began tracking in 1995. The increase follows a surprise U.S. Treasury announcement last week that it would double its planned bond buybacks after a midweek decision to expand purchases beyond prior forecasts.
