UBS sees Brazil NTN-B real yields set to fall on post-election fiscal adjustment

UBS Global Wealth Management's Brazil investment director argues that a robust fiscal adjustment after the elections could drastically reduce Brazil's cost of capital and lower real yields on inflation-indexed NTN-B bonds, which have recently traded near historic highs. The claim is an analyst forecast, not a confirmed development, and hinges on the uncertain outcome of fiscal policy after the elections. If realized, it would signal lower sovereign borrowing costs and potentially support Brazilian risk assets.