The Treasury of Brazil sees greater debts this year

The Treasury of Brazil expects this year for larger debts and reflects the strategy for obtaining bond sales above expectations for a more volatile environment in 2026, when the largest economy in Latin -America has a general election. In a revision of its annual financing plan, first published in February, the treasury predicted debts on Tuesday at the end of the year between 8.5 trillion and 8.8 trillion Reais ($ 1.60 trillion up to $ 1.65 trillion), compared to an earlier estimation of 8.1 billion.

“That increase reflects the volume of issue so far, supported by a stronger demand for the effects of the federal government,” said the Treasury.

In August, the debts shares rose by 2.59% compared to the previous month to 8,145 trillion Reais, according to Treasury data released on Tuesday.

With an intervening and long -term rates of the fall in the revenue curve and the relaxation of levels at the end of 2024, the Treasury said it took a window to generate the issue of debts, to align the volumes to the market demand and price pressure.

Public Debt Chief Daniel Leal said during a press conference that the new debt goal falls within a comfortable range, and emphasizes that the 8.8 trillion Reais ceiling does not mean that the treasury will search or reach that level.

He added that the government will probably end the year with debt -wasting slightly above 100%, after the issue to delay in the past weeks after a more intense start of the year. In 2027, the treasury is also confronted with great maturity of floating speed bonds that are linked to the Benchmark Rate Selic, with the emphasis on the strategic push that is now being issued under what it regards as better conditions and later avoids hard market dynamics. Treasury Secretary Rogerio Ceron told Reuters in July that the annual financing plan could be revised after the government had increased the domestic issue of debts to take advantage of favorable market conditions, while also preparing for the expected volatility around the elections of 2026. Ceron argued that Brazil stood out with a large part of the Brazil of Brazil, From high real interest rates. These factors have drawn a strong capital inflow, which means that this year the currency reinforces more than 13% more than 13%, stimulating fundraising of companies, stimulating foreign participation in the government debt and the elimination of equity prices. In the midst of improved market conditions, the treasury has carried out three external bond sales this year, and a fourth focused on sustainable debt can take place at the end of the year, Leal said during the press conference.

($ 1 = 5,3253 Reais)