BRASILIA, Oct 29 (Reuters) – Brazil’s public debt rose nearly 1% in September, driven largely by interest costs, Treasury data showed on Thursday, as interest expenses continued to drive debt accumulation.
• Brazil’s public debt increased 0.97% from August, to 9.383 trillion reais ($1.76 trillion), with interest expenses totaling 89.5 billion reais in the month
• Debt issuance reached 189.4 billion reais, but was almost entirely offset by redemptions totaling 188.7 billion reais over the same period
• Interest costs also dominated the year-to-date result, amounting to 784.4 billion reais, while net debt redemptions totaled 36.5 billion reais
• The Treasury expects the total federal public debt stock to end 2026 between 9.7 trillion and 10.3 trillion reais
• The Treasury said buybacks of government bonds totaled 31.6 billion reais ($5.9 billion) over Monday and Tuesday after the re-election of leftist President Luiz Inacio Lula da Silva on Sunday triggered a market selloff
• The buybacks were aimed at “contributing to the proper functioning of the market amid the repricing of assets and the adjustment of positions,” the Treasury added
($1 = 5.3440 reais)
(Reporting by Marcela Ayres; Editing by Andre Romani)
