Brazil cancels fixed-rate bond sale on slump

Thu Mar 13, 2008 10:39am EDT
SAO PAULO, March 13 (Reuters) - Brazil canceled the sale of fixed-rate bonds in the local capital markets on Thursday as yields surged because of a slump in global markets that increased investors aversion to emerging market assets.
"The regular auctions of LTNs and NTN-Fs...will not take place given the current conditions in financial markets," the national treasury said in a statement.
Brazil has two types of domestic fixed-rate bonds, the LTNs and NTN-Fs. The LTNs pay no coupon, while the NTN-Fs pay a 10 percent coupon every six months.
The treasury has canceled the auctions before, during market turmoil that pushed yields higher. (Reporting by Silvio Cascione, Writing by Elzio Barreto; Editing by Theodore d'Afflisio)