Brazil’s federal public debt dropped 2.89% in March over February, to 5.565 trillion reais, the National Treasury said on Thursday, citing an improvement in the scenario of emerging countries despite the external scenario with negative factors.
In the same period, the domestic public securities debt fell by 2.69%, to 5.343 trillion reais.
According to the Treasury, there was an improvement in the risk premiums of emerging nations despite the war in Ukraine, the new Covid-19 outbreak in China and the possible more aggressive cycle of monetary tightening in the United States.
In the month, Brazil’s CDS (credit default swap), which measures country-related risk, dropped 6.54%, according to the Treasury, to 208 basis points.
In March, the average maturity of Brazilian bonds was lengthened to 3.97 years, compared to 3.86 years recorded in February.
The average cost of the federal public debt stock decreased, from 8.68% per year in February to 8.59% per year last month. In internal doubt, the cost of inventory rose from 9.25% to 9.65% per year.
The average cost of new domestic debt issuances also increased, going from 9.5% to 10.5% per year.
According to the Treasury, there was a 16.03% reduction in its liquidity reserve in the month, from 1.278 trillion reais to 1.073 trillion reais. Over the next 12 months, 1.225 trillion reais in domestic debt securities are expected to mature.
Also according to the data, foreign investors reduced their participation in the domestic debt from 10% to 9.4%, a decline of 45.7 billion reais.
For the month of April, the Treasury points to an expansion of risks with inflationary pressures in several economies, in addition to war, Covid in China and possible monetary tightening in the US.
“In Brazil, this scenario was reflected in the domestic market, causing the yield curve to gain a level”, he informed.
