Brazil’s Federal Public Debt (DPD) dropped 0.7% in nominal terms, reaching R$5.8 trillion in July. In June, the value of the DPF was R$ 5.84 trillion. The data were released this Monday (29) by the Secretariat of the National Treasury, of the Ministry of Economy.
According to the secretariat, “the month of July was marked by an environment of risk aversion abroad, reflecting uncertainties regarding global inflation and growth.”
Also according to the Treasury, the negative variation was mainly due to the net redemption of R$ 81.62 billion, which was partially neutralized by the positive appropriation of interest, in the amount of R$ 40.5 billion.
The DPF, which includes the federal government’s internal and external indebtedness, is the issuance of public bonds by the National Treasury to finance the federal government’s budget deficit, which collects less than it spends.
The average cost of emissions increased, rising to 12.09% per year in July. However, the 12-month average cost of DPF inventory dropped to 10.76% per year in July, compared to 10.9% per year in June.
Direct Treasure
In the Treasury Direct, net issuances in the month of June totaled R$ 1.74 billion, as a result of sales of R$ 4.01 billion and redemptions of R$ 2.27 billion.
According to the National Treasury document, the security most demanded by investors remains the Selic Treasury, which accounted for 49.4% of the amount sold. The Selic rate is currently at 13.75% per annum.
Fall in liquidity reserve
The Public Debt Liquidity Reserve reduced 3.58% in nominal terms, from R$1.2 trillion in June to R$1.17 trillion in July. According to the document, “the liquidity reserve (or cushion) of the public debt corresponds to the cash available exclusively for the payment of the debt and the cash balance of resources arising from the issuance of bonds.”
Despite the drop, the Treasury states that the Reserve’s position “remains significantly above the 3-month prudential limit for the Liquidity Reserve, which in July/22 was equivalent to R$505 billion, allowing the Treasury flexibility in the execution of the financing strategy .”
Source: CNN Brasil
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