Brazil’s 10-year government bond yield inched up to 14.60%, after touching a three-week low of 14.57% on August 25th, as the National Treasury’s auction of fixed-rate securities put upward pressure on rates. The auction was the main driver of the move, pushing yields higher and further steepening the curve. It was the second-largest auction of the year in terms of financial volume: 31 million securities were offered on August 27th, with a total value exceeding $24 billion.
On the macroeconomic front, labor market data confirmed expectations of another slight decline in the unemployment rate, from 5.4% to 5.3%. The baseline scenario remains one of historically low unemployment, moderating growth in formal job creation, and resilient income gains, though momentum has softened at the margin. This mix continues to underpin economic activity—albeit at a slower pace than in 2025—while keeping services inflation a central concern for monetary policymakers.
