Brazilian bonds enjoyed a second day of higher prices Thursday, defying negative sentiment in the broader markets and turning a blind eye to the country’s ugly fundamentals.
Bonds were 1.5-4.0 points higher on the day in the wake of Wednesday’s rally, which was sparked by news that oil company Petrobras would hike domestic fuel prices.
The 2024s issued by Petrobras were quoted as high as 79.00 on Thursday before closing at around 75.50-76.50 – a good four points stronger on the day, according to data from Trace.
Traders saw little to justify the turnaround, putting the rally down to short-covering and bargain-hunters following the unwinding of Petrobras exposure among high-grade accounts.
Brazil Energy Insight 
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