In March, Brazil’s public debt saw its first monthly decline of the year, driven by a significant volume of bond redemptions that outweighed the cost of interest payments.
According to official Treasury data released on Monday, the total debt stock decreased by 2.34% compared to February. This brings the country’s total outstanding debt to 8.633 trillion reais (approximately $1.73 trillion).
Key Drivers of the Decrease:
- Bond Redemptions: The government saw net redemptions totaling 305.4 billion reais during the month.
- Interest Costs: Despite the overall drop, interest payments remained a significant factor, reaching 98.1 billion reais in March.
- Rising Costs: The average 12-month cost of domestic debt issuance ticked up slightly to 13.92%, compared to 13.76% the previous month.
The vast majority of Brazil’s debt remains domestic, with 96.2% of the total stock denominated in reais. While this monthly decline is a notable shift for 2026, the Treasury’s broader annual plan still anticipates that total debt could reach between 9.3 trillion and 10.3 trillion reais by the end of the year. +1