Brazil's Finance Ministry Prepares Market Interventions After Lula's Re-election

Brazil's Finance Ministry has a "toolbox" ready to address significant market volatility following President Lula's surprising re-election, planning to monitor assets and intervene as needed to prevent dysfunction. The Treasury intervened twice in public bond markets after yields on medium and long-term maturities rose over two points. The dollar surged over 8% and the stock market fell over 13%, the biggest daily drop since 2020, triggering a trading halt. Finance Minister Dario Durigan met with Lula and Planning Minister Bruno Moretti to discuss fiscal plans, including spending reviews and targeting the fiscal goal's center. The 2027 target is a surplus of R$73.2 billion, with the floor for next year set at R$36.6 billion.