April 18, 2016 / 2:52 AM / 2 years ago

Brazil credit risk slips as lower house votes for Rousseff ouster

SAO PAULO, April 17 (Reuters) - Brazil’s perceived sovereign risk among investors fell on Sunday, with the cost of insuring Brazilian bonds for five years falling yet again in the credit-default swaps market after the country’s lower house of Congress voted to back the impeachment of President Dilma Rousseff for breaching budget laws.

The difference between the yields that the Brazilian and U.S. governments pays on their 10-year bond narrowed to 4.315 percentage points late on Sunday, from 4.42 points on Friday. The cost of insuring Brazilian bonds for five years in the CDS market fell for the fourth day in five to 340.7 basis points, near the lowest levels since last August, according to Markit pricing.

An exchange-traded fund of Brazilian equities gained 3.8 percent at 11:20 p.m. local time, or 11:20 a.m. in Tokyo, where it is traded.

Rousseff’s opponents reached the 342-vote mark needed to send her impeachment to the Senate for trial, a major step towards potentially ending 13 years of leftist Workers Party rule in the divided nation. (Reporting by Guillermo Parra-Bernal; Editing by Shri Navaratnam)

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