Brazil Treasury Yields Rise 15bp on STF Crisis, Lula Lead Widens

Brazilian Treasury bond yields rose up to 15 basis points as a crisis involving the Supreme Federal Court (STF) and a BTG/Nexus poll showing Lula widening his lead over Flávio Bolsonaro pressured rates. The market is pricing heightened political and institutional risk, reversing Friday's more favorable sentiment. The move reflects investor concern over fiscal and governance stability ahead of the electoral scenario.