Every week we give you our summary of happenings in the bond market.
Last week the local bond market had to deal with the ripples of political events in the USA and Brazil. Nonetheless, despite significant intra-week volatility, the market actually ended the week slightly stronger. Offshore investors were once again net buyers of local currency government bonds. The market is expecting both a significantly lower local CPI print and for the central bank to keep the repo rate unchanged at this week’s policy meeting.