Brazil’s 10-year government bond yield edged higher, rising above 13% in October amid election uncertainty ahead of the presidential runoff. A Datafolha poll showed Senator Flávio Bolsonaro and President Lula tied at 50% each of valid votes. Earlier polls indicated a statistical tie, with Bolsonaro’s lead narrowing compared with previous surveys. Some market participants believe a Flávio Bolsonaro administration would be more likely to rein in public spending, although neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. Beyond the election, uncertainty surrounding the external environment and rising commodity prices also weighed on the market. Oil prices and US Treasury yields moved higher, adding to upward pressure on Brazilian yields. Meanwhile, Brazil’s mid-month inflation rate reached 4.62% in October, below market expectations of 4.74%.