Brazilian Treasury bond rates expose unsustainable government spending under Lula
By
13.jun.2026 às 21h05
2h ago· 3 min readpt
85/100
Golden Brown
Bagelometer↗
Pulled from the oven just right. Trustworthy, fact-dense, deeply satisfying.
Score85TypeeditorialSentimentvery negative
Summary
The article criticizes the fiscal management under President Lula's administration in Brazil, arguing that reckless spending on public accounts is driving interest rates higher. Since May, future interest rates have surged, and the market no longer expects cuts to the benchmark Selic rate (currently 14.5% per year). The Central Bank may only reduce rates by 0.25 percentage points in the next Copom meeting, after which Brazil may face prolonged tight monetary policy that burdens families and businesses. Real interest rates have exceeded 8% above IPCA inflation, and rising inflation prevents any easing.
Key quotes
· 3 pulledComo tem sido a regra na gestão de Luiz Inácio Lula da Silva (PT), a conduta perdulária com as contas públicas cobra seu preço na forma de juros cada vez mais altos.
Desde maio, dispararam as taxas futuras no mercado, que já não consideram haver mais espaço para cortes na estratosférica Selic, hoje em 14,5% ao ano.
a partir daí, é muito provável que o país tenha de conviver por muitos meses com o arrocho que onera famílias, empre
Taxas chegam a superar 8% acima do IPCA; inflação em alta trava abrandamento