Brazil's risk premium as measured by JP Morgan's Embi+ index for the first time Tuesday broke through the psychologically important barrier of 300 basis points to close at 299 points, down 3.86% from Monday, Brazilian dailies reported Wednesday.
Analysts attributed the decline in the Brazilian risk spread to a signal by the U.S. Federal Reserve that the cycle of interest-rate hikes begun in mid-2004 may be coming to an end.
The end of monetary tightening in the U.S. means that more funds will be available for emerging countries such as Brazil.
Brazil's risk yield has been falling to consecutive record lows since early December, press reports said.