The Brazilian Treasury on Thursday sold $1.5 billion in global bonds due in 2047, the Treasury said. The bond fetched an effective yield of 5.6%, or 271 basis points over comparable U.S. Treasury bonds. It was the first sovereign bond offer made by Brazil this year to overseas investors and the first offer following a Standard and Poor’s credit rating downgrade. S&P downgraded Brazil last week from double-B to double-B-minus. The downgrade seemed to have little effect on investors, with the bond offer oversubscribed. Despite fiscal problems and economic uncertainties, Brazil has substantial foreign reserves and a large trade surplus.
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