With the Selic at historically high levels and market fears related to Brazil’s fiscal trajectory, the average cost of issuing National Treasury public bonds in 2025 was the highest since the mid-2000s. Against this backdrop of high rates, market participants surveyed by Value raise questions about the Treasury’s strategy of seeking to expand its liquidity cushion beyond necessary levels, at the same time as it sought to extend the duration of issues, resulting in a higher cost of debt tied up over a longer period.
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