Brazil NTN-B real yield spread vs US TIPS narrows to 4pp, lowest since mid-2024

Brazilian long-term real interest rates have fallen relative to US TIPS, with the 10-year NTN-B/TIPS spread crossing below 4 percentage points for the first time since mid-2024. This reflects market optimism about Brazil's fiscal trajectory following the first election round, while global real rates have risen. The narrowing spread suggests improving investor confidence in Brazilian assets, but the differential remains wide, limiting further rally.