Brazil debt profile worsens as floating-rate share hits fresh high
TLT•Brazil’s share of federal debt linked to the Selic rate rose to 52.7% in August from 51.1% in July, while total federal public debt increased 0.04% to 9.293 trillion reais.
1. Floating-rate debt rises
The share of Brazil’s debt linked to the benchmark Selic rate reached 52.7% in August, Treasury data showed, extending a deterioration in the country’s debt profile. The increase came one month after the Treasury raised its 2026 ceiling for floating-rate debt to 53%.
2. Debt and borrowing costs
Brazil’s federal public debt rose to 9.293 trillion reais ($1.78 trillion), driven by interest costs totaling 88.4 billion reais. The government recorded net debt redemption, with bond issuance of 211.6 billion reais and maturities of 296.1 billion reais. The Selic rate stood at 13.75% despite an easing cycle launched in March.
