US Treasury yields hit multi-decade highs; Brazil election heads to polarized runoff

Brazil's presidential election has advanced to a polarized runoff between Lula and Flavio Bolsonaro, confirming a period of heightened domestic market volatility. This occurs as global markets experience stress, evidenced by multi-decade high US Treasury yields, which are influencing Brazilian Treasury movements despite a soft US payroll report. The election outcome remains a key uncertainty for fiscal policy and local asset performance.