Risk premiums on emerging market bonds on Tuesday were close to record lows as hopes of a credit rating upgrade for Brazil spurred another round of buying.

As bond prices rose, the risk premium on emerging market bonds, as measured by JPMorgan’s EMBI+ index, a market barometer, touched an intraday low of just 164 basis points over US Treasuries during trading. The lowest close for the index – 165bp over US Treasuries – was reached on Friday.