Brazilian finance minister Mantega says his countries $10 bln contribution to the IMF is not intended to weaken the dollar. Maybe not, but that has been the effect thus far. The market is concerned that Brazil will dump $10 bln in Treasuries to buy bonds from the IMF. US 10-year notes are at 3.93%, their highest since last October. An auction is underway with results due at the top of the hour, which could be contrubuting to the weakness of Treasury prices.
EUR/USD has rebounded back above 1.4000 on the Brazilian news.
