Brazil yields rise as Jan inflation beats forecast

SAO PAULO Feb 5 (Reuters) - Yields on Brazilian interest rate futures contracts <0#DIJ:> edged higher on Friday after inflation accelerated in January above predictions.

The yield on the July 2010 futures contract 2DIJN0 climbed 3 basis points, or 0.03 percentage point, to 9.15 percent. The yield on the Jan. 2011 contract, the most widely traded this morning, rose 3 basis points to 10.27 percent.

The government said earlier that consumer prices, as measured by the benchmark IPCA index, jumped 0.75 percent in January, more than the median 0.7 percent predicted in a Reuters poll of 31 analysts. The 12-month inflation rate reached in January its highest level since June 2008.

(Reporting by Guillermo Parra-Bernal Editing by W Simon )