We have a very calm arrangement, with freedom to manage debts, says the General Debt Coordinator | finance

“We are at a very comfortable level when considering the three-month precautionary limit,” he commented. The public debt liquidity cushion ended October at R$1.047 trillion, compared to R$1.032 trillion in September, which is enough to cover 8.81 months of upcoming bond maturities. This data was published today by National Treasury.

He expected there to be a rebound in November in the issuance of inflation-linked paper, at nearly R$20 billion, about 12.1% of the volume issued so far in the month. Today, the Treasury held its final auction for November, although there is still a second round of this bid and direct Treasury issues to close out November.

In total, R$162 billion have been issued so far this month, with the leading issuances highlighting R$84.6 million (52.2% of the total issued so far). Regarding Selic-related securities, R$56 billion (35.7% of the total) were issued.

In November and December, the trend was for net emissions to rise significantly, Heleno explained. Even if the Treasury reduces the volume offered, the net effect is increased due to the lack of planned redemptions during this period, in contrast to what was recorded in October.

In response to a question about the impact of eliminating the veto on the state debt repayment program (Propag), Helano stated that from a debt management perspective, the Treasury does not take into account the merits of public policy options. But financially, he said, “they are calm and on target.”

He commented: “Our role (in debt management) is, to look at the inputs from both fiscal policy and monetary policy and the need for financing, collect sets of information, assess how the market is behaving and move to financing (…). From a financial point of view, we have been completely calm and within our targets.”