Brazil Courts Investors Ahead of Potential Euro Bond Return

Brazil is sounding out investors on a return to global debt markets and may pursue its first euro-denominated sovereign issuance in more than a decade. The outreach is exploratory and could broaden funding sources and affect EM bond and FX flows if it becomes a priced deal. Near-term market moves are likely limited until deal size, tenor and pricing are announced.

Analysis

Brazil is sounding out investors on a return to global debt markets and may pursue its first euro-denominated sovereign issuance in more than a decade. The outreach is exploratory and could broaden funding sources and affect EM bond and FX flows if it becomes a priced deal. Near-term market moves are likely limited until deal size, tenor and pricing are announced.