Brazil DI Rates Plunge as Flávio Bolsonaro Gains in Polls, STF Crisis Deepens

Brazilian interbank deposit (DI) futures rates fell sharply as polls showed Flávio Bolsonaro strengthening and the Supreme Federal Court (STF) crisis escalated. The market is pricing a higher probability of a political shift that could alter fiscal policy, reducing risk premiums. The move reflects investor optimism about potential policy change, but the sustainability depends on the evolving political and judicial dynamics.