Brazilian Bloodbath: Currency Halted, Futures Crash, Bonds Tumble Most On Record

Tyler Durden's picture

As first reported last night, Brazil has plunged back into yet another political crisis less than a year after the impeachment of Dilma Rouseff, when a report in Brazil's O Globo newspaper revealed that President Michel Temer was involved in an "hush money" cover-up scheme involving the jailed former speaker of the lower house of Congress, Eduardo Cunha, who was the mastermind behind the impeachment of Rouseff.

Already an impeachment request against Temer has been filed by the opposition, although it was unclear who would replace him or what the process would look like. If Temer resigns or is impeached, Congress would elect an interim president until the next scheduled vote in October of 2018. An early election could only be held with a constitutional amendment approved by lawmakers.


And while most Brazilian asset markets were closed at the time, a Brazilian stock ETF trading in Japan, gave an indication of what to expect: a drop of about -8%.

In retrospect it may have been optimistic, as moments ago the Brazilian real was halted for trading after crashing 6%...

... Bovespa futures plunged 10%...

... and Brazil's Eurobonds due 2021 tumbled the most on record.

... and Brazil's ETF (EWZ) has collapse.

The collapse promptly dragged the Brazilian Central Bank which tried to assure markets, stating it was "monitoring the impact of recent information published by the press and will act to maintain full functionality of markets" adding that "this monitoring and action are focused on the good functionality of markets."

So far it is failing.

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IENTJ's picture


Rich Stoehner's picture

What kind of yield do you get on 10k year bonds?

WTFRLY's picture

It is like that first fart before you know you are gonna take a really gross shit

The central planners's picture


Stormtrooper's picture

You get 1,000,000% but the original buyer is also required to redeem them.

DetectiveStern's picture

Well on a 9,999 lease on some land the going rate is usually a peppercorn a year...

junction's picture

How do you say "winning" in Portugese?

debtor of last resort's picture

Build that wall mr Trump. And fast.

Philo Beddoe's picture

How long can you hold your breath? 

Fake Trump's picture

"It was just my campaign bullshit. No, it won't happen."

Bill of Rights's picture

Fuck off Trump has done more in the last 4 months than Barry suck a cock did in 8 years.

bshirley1968's picture

Doing more never equalled doing better.  So more bullshit is better than less bullshit?

Sounds like Trump's logic.  Bigly.

abyssinian's picture

Bullish for US markets right? Now all the money will flood here. lol buy the dip today boys, cause Yellen will

Bill of Rights's picture
A big beat for the Philadelphia Fed business outlook index for May at 38.8 vs 18.5 estimate. Last month the index came in at 22.0.
  • Prices paid index 24.2 versus 33.7
  • Prices received a 15.3 versus 16.6
  • Employment 17.3 versus 19.9

Off in the distance all the Soros cock suckers all swallow at once.

bshirley1968's picture

Are you hinting that some numbers from a Fed Reserve bank somehow indicate "things are getting better"?  And thereby indicating those numbers can be trusted? And furthermore insinuating that the Soros gang is somehow worried.......because all of Trump's "hard work" and 4D chess playing is paying off?

I didn't think so.  Cause that would mean your head is way up your ass.....

Dominus Ludificatio's picture

Why bother with the crooked political process .Just kill that criminal Temer and some one will get the message.

LawsofPhysics's picture

LOL!!!  Didn't Gartman just say to buy the EMs?


Let me be clear, the central banks of the planet have been working together to keep stealing via fiat money.

However, The Fed knows that they must defend the only thing that they truly control, the FRN!!!

They will betray all the other central bankers and they will defend the FRN to the death...   (taking the world to war, again)

Hedge accordingly

"Full Faith and Credit"

Ban KKiller's picture

I LOVE counter party risk...Central banks bought foreign equities? Just billions.

JackMeOff's picture

I love the smell of economic chaos in the morning!

El Hosel's picture

EWZ .....zzzzzz you later Denny, Long of Pain as it moves dramatically from the upper left to the very lower right.

smacker's picture

Seems to me that if pressure rises for the totally corrupt  Michel Temer to quit there will either be a "temporary" military takeover of government to maintain law and disorder and/or an early election will be called. This may trigger the return of none other than the utterly corrupt Lula into the race if his current interrogations by a sort-of Grand Jury determine there are no criminal charges to pin on him in the Petrobrás scandal.

And talking about huge scandals, let's not forget Odebrecht which was up to its neck in kick-back schemes involving Petrobrás and construction projects for the Olympics.

"seja bem vindo o Brasil, o país do futuro e sempre será"

Kaladin Stormblessed's picture

Circuit Breaker activated at 60.470 (-10,47%).

DaBard51's picture

Brazil centralbank "monitoring the impact"...

"Watching the train wreck", translated from the local argot...



When nine hundred years old you become, look this good you will not.

GoldHermit's picture

This is how global contagions start.

Dangerclose's picture

It pisses me off that I cannot trade USD/BRL, XAU or the Russian ruble because I am an American citizen or so my forex broker tells me.

lasvegaspersona's picture

Brazil scandal!