Brazil Cancels Bond Auction, Adds Dollar Liquidity After 25-Basis-Point Rate Cut

1 articles · Updated · Bloomberg · Jun 22

Brazil’s Treasury scrapped a scheduled Tuesday auction of NTN-B inflation-linked bonds, while the central bank moved to inject dollar liquidity into the spot FX market to calm investors.
The intervention followed last week’s selloff in local rates after the central bank cut interest rates by 25 basis points even as it warned that the inflation outlook had worsened.
By pulling the bond sale and supplying dollars, authorities are trying to steady domestic funding conditions and ease market jitters triggered by that mixed policy signal.

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