Brazil’s local bond yields rose to a record and the cost of protecting against default climbed after President Dilma Rousseff suffered a setback in Congress that eroded measures to pare budgets and avoid a junk credit rating.
The real declined to a 12-year low as the lower house of Congress voted for spending increases hours after two parties broke with Rousseff’s ruling coalition. Foreign investors increased net bets to $31.1 billion that the real would decline, resuming their advance toward the 10-year high of $38.9 billion reached in May.
Brazil Energy Insight 
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