BNY’s Geoff Yu notes Brazilian portfolio inflows are near post-COVID highs ahead of the Selic decision, with strong demand for equities and government bonds. Flows strong but FX conviction cautious"BRL flows are recovering ahead of today’s Selic rate decision, supported by renewed terms of trade interest, strong equity demand and continued purchases of Brazilian government bonds. "Although flow magnitudes have been softer for bonds than for equities, momentum remains positive and points to continued carry demand. "Brazil’s financial account nevertheless remains strong, although momentum is slowing. Our iFlow EM portfolio flow proxy continues to track the official balance-of-payments data closely and suggests combined inflows peaked in April, which is consistent with the official figures.