Brazil Treasury yields fall 4th straight day; oil down, election polls tight

Brazilian interbank deposit (DI) and Treasury rates have declined for a fourth consecutive session, primarily driven by lower US Treasury yields and falling oil prices, which reduced global risk premiums. Domestic political sentiment, specifically an electoral poll showing Lula leading and investor optimism regarding a potential opposition win, is contributing to the downward pressure on rates, despite persistent election uncertainty. The confluence of external and internal factors suggests easing inflation expectations and potential for monetary policy accommodation.