January 9, 2014 / 2:55 PM / 4 years ago

Brazil sells new 10-year benchmark bond at record-high yield

RIO DE JANEIRO, Jan 9 (Reuters) - Brazil’s Treasury on Thursday paid the highest yield ever to launch a new 10-year benchmark fixed-rate bond, underscoring investor concerns about the deterioration of the country’s fiscal and economic fundamentals.

The Treasury said it sold two million NTN-F bonds maturing in January 2025, worth 1.64 billion reais ($683 million), at a yield as high as 13.3899 percent. The bond is expected to become Brazil’s new 10-year benchmark paper.

The yield paid on the new NTN-F bond is considerably above the level of Brazil’s base Selic rate, which currently stands at 10 percent. Most economists forecast the central bank will raise the Selic to 10.25 percent this month to fight inflation.

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