NEW YORK (TheStreet) -- Shares of Itau Unibanco Holding (ITUB) - Get Report  are rising by 2.97% to $6.93 in midday trading on Wednesday, as Brazil's highest interest rates in nine years are boosting returns on government bonds, which is helping the financial services company navigate through the country's economic crisis, Bloomberg reports.

Itau Unibanco is a Sao Paula-based holding company that provides a range of financial products and services to individual and corporate clients in Brazil.

"Banks' biggest holdings are government bonds, which generate higher returns when interest rates rise. And there is the liquidity effect as credit demand is slowing. Banks are piling up more cash in government bonds as loans mature," Rodrigo Martin, an analyst at Quantitas told Bloomberg.

For the first half of this year banking industry revenue from proprietary trading and asset liability, which includes gains from government bonds, popped by 30%, Bloomberg noted.

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Brazil is making its way towards its longest recession since the 1930s.

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