Brazil’s Federal Public Debt (DPF) rose again in April and May. With a rise of 2.01% in May, the nominal value of the DPF reached R$5.702 trillion, compared to R$5.589 trillion in the previous month. In March, DPF totaled R$5.564 trillion.
The data for the two months were released by the National Treasury Secretariat this Tuesday (28). Due to the civil servants’ strike, the publication of the DPF Monthly Report had been suspended for a few weeks.
The DPF, which includes the federal government’s internal and external debt, is the issuance of public bonds by the National Treasury to finance the federal government’s budget deficit, which collects less than it spends.
The rise in the indicator is the result of the greater number of issuances of papers, which totaled R$ 90.295 billion in May. The lower redemption of securities, which totaled R$ 21.111 billion, also contributed.
According to the Treasury, the May result was marked by increased risk aversion, due to expectations of monetary tightening in the United States and inflationary pressures at a global level.
“The domestic futures yield curve gained level with the COPOM signaling the continuity of the monetary tightening cycle, in addition to the increase in oil prices and the devaluation of the exchange rate. Longer terms rose by around 30 bps. The CDS Brasil recorded an increase of 9.00%, reaching the value of 223 basis points at the end of the month”, highlights the document.
Also according to the agency, the average cost of DPF stock in 12 months increased to 9.53% per year in April and even more in May, to 9.86% per year. At the same time, the average cost of issuances in public offerings in the domestic market increased to 11.29% per year in April and 11.69% in May.
In 2021, the DPF advanced 12%. The expectation of the economic team is that the Public Debt closes this year between R$ 6 trillion and R$ 6.4 trillion.
Source: CNN Brasil