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Brazilian markets rally on Bolsonaro first-round lead; spending-cut hopes questioned
El NacionalLO·BR·about 4 hours ago
Brazil's 5-year CDS spread fell to ~110 bps, the lowest since February 2020, reflecting improved investor sentiment amid a market rally. The level now approaches Mexico's ~95 bps, indicating converging perceived sovereign risk. This signals a notable shift in risk perception, though sustainability depends on fiscal and political developments.