Brazil's public debt drops for third straight month in September
Reuters
Published Oct 26, 2022 02:23PM ET
BRASILIA (Reuters) - Brazil's federal public debt fell for the third consecutive month in September, official data showed on Wednesday, with the net redemption of bonds again reducing the government's liquidity reserve.
According to the Treasury, bond redemptions exceeded issuances by 76.4 billion reais ($14.29 billion). At the same time, interest payments on public debt reached 47.2 billion reais.
As a result, the stock of federal public debt fell by 29.4 billion reais over August to 5.752 trillion reais.
The Treasury's liquidity reserve, which allows it to have greater freedom in debt management amid market volatility, fell 10% from the month before to 1.031 trillion reais, lowest level since Oct 2021.
The Treasury said the volume is sufficient to ensure payments of 9.55 months in bond maturities ahead.
Given the recent inflationary relief in Brazil, the yield on inflation-linked bonds decreased, leading the average interest rate on the issuance of domestic federal debt to fall to 11.7% in September from 11.9% in August.
Brazil's consumer prices were in deflationary territory for the third month in a row in September, benefiting from major tax cuts on fuels and electricity ahead of a presidential election runoff on Oct. 30.
($1 = 5.3458 reais)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.