Brazil’s federal public debt rose 2.34% in November over October, to BRL 5.499 trillion, in a period marked by a higher volume of issuances and an increase in the costs of selling the bonds.
The debt amount is close to the threshold of the band established for 2021 in the Annual Financing Plan (PAF), from R$ 5,500 trillion to R$ 5,800 trillion.
According to data presented this Wednesday by the National Treasury, a volume of R$ 102.916 billion in federal public debt issues was registered in November, while 18.280 billion reais in redemptions were observed.
As a result, the month ended with a net issuance of R$ 84.636 billion. There was also a positive appropriation of interest of R$ 41.087 billion, which contributed to the increase in the stock in November.
In the period, the internal public securities debt increased from BRL 5.106 trillion to BRL 5.233 trillion.
According to the Treasury, the 12-month accumulated average cost of the federal public debt stock rose from 8.02% per year in October to 8.62% in November, the highest value since October 2020. In the same period, the average cost of issues in public offerings of the internal debt increased from 7.48% per annum to 8.02%.
According to the general coordinator of Public Debt Operations at the National Treasury, Luis Felipe Vital, the month of November saw a worsening in the perception of risk in emerging countries, which included Brazil, albeit to a lesser degree, with uncertainties about the evolution of the Ômicron variant of the coronavirus.
According to him, the cycle of high interest rates in the domestic market is affecting the cost of debt indicators.
“The cost statistics continue with an upward trend,” he said. “We had an increase in the average cost of issuance in all types of bonds, in all indexes”, he added.
Vital stated, however, that there was a reduction in longer interest rates in the country with a more optimistic view, especially due to the approval of the PEC dos Precatório.
There was a shortening of the average maturity of the federal debt, which dropped from 3.97 years in October to 3.92 years in November.
On the other hand, there was a slight improvement in relation to the percentage of debt maturing in up to 12 months, which changed from 21.50% in October to 21.31% in November. At the end of 2020, this measure was at 27%.
Regarding holders, the participation of foreign investors in the internal securities debt was practically stable, at 10.52%, with an increase of R$ 16.68 billion in the stock held by this category between October and November.
Reference: CNN Brasil
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