Brazil Impeachment Upheaval Proves to Be a Boon for Its Coffers
- Brazil's borrowing costs fall to 7-month low at local auction
- The country faces a soaring budget deficit as economy sputters
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Mounting speculation that Brazil President Dilma Rousseff will be impeached is making it cheaper for the cash-strapped nation to borrow.
At a local bond auction Thursday, Brazil sold 1.5 billion reais ($415 million) of notes due in January 2020 to yield 14.1 percent, the lowest since August. A week earlier, the government issued 3.85 billion reais of fixed-rate debt due in 2023 and 2027 in the biggest sale of the securities since May. Yields on similar bonds due 2025 have plunged 2.8 percentage points since September.