Brazil Jacks Up Bond Tax, Again

Brazil Jacks Up Bond Tax, Again

Brazil Funds Economy & Policy Corporate & Sovereign Strategy

Brazil has again hiked the IOF tax for fixed income investments, to 6% from 4%, in a move that analysts say will dent bonds and FX. Brasilia is also indicating that it will do more to stem the unprecedented inflows of portfolio money seeking relatively high returns in the local bond market. “While markets elbowed the first hike to 4% only 2 weeks ago, this move hits the markets with a considerably more fragile technical position,” says Barclays, which sees a threat to BRL and a sell off in the l

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial