Brazil rallies on support for Alckmin’s presidential bid; Argentina, Uruguay also gain

By Rebecca Melvin

New York, July 20 – A rally in Brazil’s financial markets including debt continued for a second day on Friday as Argentina and Uruguay bonds joined in with gains, according to market sources.

The rally was sparked by reports of headway for center-right presidential candidate Geraldo Alckmin in Brazil’s October presidential elections.

Brazil’s 4 5/8% notes due 2028 were up 0.23 point, or 0.24% to 93.198 on Friday. The paper is well off the lows that it hit in June – at a little more than 88 – but still down about 7% for the year to date.

Brazil’s 5 5/8% notes due 2041 traded up 1.65 point, or 1.8%, to 93.36 on Friday. This bond has traded as low as 83.65 and as high as 103.70 in the last year.

Brazil’s 5 5/8% notes due 2047 were at 90.103, which was up about 0.25 point.

Light SA’s 7¼% notes due 2023 were up about 0.60 point on the day at 96.56. The Rio de Janeiro-based utility priced $600 million of the notes at the end of April, just before a steep selloff in emerging markets currencies and debt. But Banco Safra SA’s 4 1/8% notes due 2023, the $500 million priced in January, were off three cents at 94.92 on the day.

The Brazilian real was up more than 1.6% on Friday, outperforming other Latin American currencies.

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