Brazil rates curve will only flatten with fiscal discipline -treasury secretary

BRASILIA, Aug 28 (Reuters) – The steepness of Brazil’s yield curve is no mystery and is a result of uncertainty over the country’s fiscal path, Treasury Secretary Bruno Funchal said on Friday, adding that it will only flatten if the government sticks with its fiscal consolidation agenda.

Speaking in an online event hosted by the Getulio Vargas Foundation, Funchal said fiscal credibility was essential to bringing down longer term rates, and the government is only likely to post a primary budget surplus in 2026 or 2027. (Reporting by Gabriel Ponte and Jamie McGeever Editing by Chris Reese)

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