Ironic how policy decisions might backfire (as governments are restrained by the markets reactions)

“Investor concern is mounting about Rousseff’s ability to rein in the budget gap after she said last week that she’ll increase payouts to the poor and may raise the minimum wage more than the 5.5 percent proposed in the government’s 2011 budget bill. Yields on benchmark interest-rate futures soared 23 basis points, or 0.23 percentage point, this month as traders bet spending growth under Rousseff will fuel inflation and prompt the central bank to raise borrowing costs.