Brazil’s 10-year government bond yield declined to 14.7% from the near one-month high reached on August 14. The move was supported by expectations of a tighter presidential race and broad-based weakness in the US dollar. Financial markets view Senator Flávio Bolsonaro as more fiscally restrictive than President Lula, especially as high domestic yields continue to weigh on economic activity. An investigation into leaks involving Lula’s son and signs that Flávio is narrowing the gap in potential runoff elections have raised expectations of a possible change in government and economic policy. A BTG/Nexus poll on Monday showed Lula and Flávio in a technical tie in a potential runoff. US Treasury yields remained elevated despite the Treasury increasing the limit for long-term bond buyback operations.