Brazil Treasury yields fall post-holiday as local elections dominate, IPCA+ 2032 at 7.80%

Brazilian Treasury real yields declined after the holiday, with the IPCA+ 2032 real rate dropping five basis points to 7.80%, the lowest since May. Local election dynamics are overshadowing external factors, suggesting domestic political sentiment is driving fixed-income positioning. The move indicates easing inflation expectations or increased demand for inflation-linked bonds, but the sustainability depends on election outcomes and fiscal signals.