Overall, you have a very technical market pushing us to historical highs because once people got a feel for these higher levels, it has been an easy push to the upside and has been helped by lack of liquidity.
Next week is characterized by very low liquidity in Brazilian financial markets, and no major economic data are released.
People are starting to become weary of the inversion in the U.S. curve and in particular the yields that you receive in the 6-month and 2-year notes.
Treasuries seem to be overly happy and emerging markets seem to be quite content also.
In Argentina in particular you have seen a pickup in volatility over the last couple of months, and it has to do with the fact that it has higher yields available and longer duration and makes it prone to volatility.
Both countries are convinced they're going to meet their future financing needs on the domestic markets.
You don't see major these kinds of fluctuations unless there's major maintenance going on, which is usually announced in the press.
In general it's a healthy profit taking move for the EM market, and for the domestic markets in Latin America as the stock and currency markets are coming off.
The Latin American market is going to pay a lot of attention to moves in U.S. Treasury rates, while the US equity market remains a major momentum generator.
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