US inflation-linked bond yields hit 18-year high; Brazilian investors weigh FX hedge

Real yields on US inflation-protected securities (IPCA+ equivalent) have reached their highest level in 18 years, drawing Brazilian investors seeking higher real returns. The analysis compares potential returns against Brazilian fixed income under scenarios of stable or rising USD/BRL, highlighting currency risk as a key variable. This reflects a broader global trend of elevated real rates, which could pressure emerging-market capital flows.