UPDATE 1-Brazil's public debt drops sharply in January amid Treasury decision to hold off issues

(Adds details, context) BRASILIA, Feb 28 (Reuters) - Brazil's federal public debt fell 3.07% in January from the month before on strong net redemptions, as the government refrained from issuing larger bond volumes amid rising costs, the Treasury said on Tuesday. Public debt fell to 5.769 trillion reais ($1.1 trillion), affected by net redemptions of 230.7 billion reais and by interest payments on public debt that reached 48 billion reais, said the Treasury.

The average interest rate on the issue of domestic federal debt rose to 12.23% in January from 12.08% in December, to the highest level since April 2017. Treasury Secretary Rogerio Ceron told Reuters earlier this month that the government was holding off issuing debt due to the pricing that potential investors were seeking.

Brazil's yield curve steepened as President Luiz Inacio Lula da Silva criticized the central bank for keeping its benchmark interest rate at a six-year high of 13.75%. The Treasury's liquidity reserve, which allows the government to have flexibility in debt management amid market volatility, fell 18.9% in January from December, to 953.4 billion reais. In a statement, the Treasury said the volume still "guarantees payment for the next 7.62 months ahead of maturities, therefore well above the 3 months of maturities taken as the prudential limit for debt management." ($1 = 5.2201 reais)
(Reporting by Marcela Ayres; Editing by Aurora Ellis)

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

UPDATE 1-Brazil's public debt drops sharply in January amid Treasury decision to hold off issues

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

Solid price gains for gold, silver after busy news weekend

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout

off-the-wire

UPDATE 1-Brazil&apos;s public debt drops sharply in January amid Treasury decision to hold off issues

By Reuters

Reuters

Reuters

UPDATE 1-Brazil's public debt drops sharply in January amid Treasury decision to hold off issues