Bargain Hunters Step In After Brazil Market Rout
The real plunged 7% and yields on 10-year government bonds rose two percentage points after President Luiz Inácio Lula da Silva’s surprise Oct. 25 victory, prompting bargain hunters to enter the market.
By Craig MellowA fourth term for the left-leaning Brazilian President Luiz Inácio Lula da Silva is bad news from markets' point of view. But is it bad enough to justify a 7% plunge in the real and two percentage point leap in yields on 10-year government bonds following Lula's surprise Oct. 25 vict…