{"id":7872,"date":"2023-04-12T16:34:11","date_gmt":"2023-04-12T16:34:11","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/brazil-treasury-says-foreign\/"},"modified":"2023-04-12T16:37:39","modified_gmt":"2023-04-12T16:37:39","slug":"brazil-treasury-says-foreign","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/brazil-treasury-says-foreign\/","title":{"rendered":"Brazil treasury says foreign investors pouring back into public debt"},"content":{"rendered":"<p>By Marcela Ayres and Bernardo Caram<\/p>\n<p>BRASILIA (Reuters) &#8211;     Foreign investors are returning in numbers to Brazil&#8217;s public debt market, Treasury Secretary Rogerio Ceron told Reuters, just after local financial assets rallied since the government proposed new fiscal rules two weeks ago.<\/p>\n<p>In a late Tuesday interview, Ceron said the government expects to double the foreign share of domestic public debt to around 20% by 2026. He cited demand at four times last week&#8217;s offering of a $2.25 billion sovereign bond issue, Brazil&#8217;s first since 2021, as evidence of renewed foreign interest.<\/p>\n<p>&#8220;The external issuance proves this clearly. We feel the presence of non-residents more strongly in our auctions,&#8221; he said.<\/p>\n<p>President Luiz Inacio Lula da Silva&#8217;s new government made a long-awaited announcement on March 30 of proposed fiscal rules.<\/p>\n<p>Since then, the country&#8217;s yield curve has improved sharply, with the rate on the most liquid interest rate futures contract, due in January 2025, falling to 11.790%, from more than 13% two months ago. <\/p>\n<p>Confidence in the new fiscal rules, along with easing inflation and an improving global outlook, also boosted Brazil&#8217;s currency to its strongest level in ten months, while the Bovespa stock index rose nearly 5% so far this month.<\/p>\n<p>Ceron said the new fiscal framework signals a trajectory for public debt to stabilize, providing &#8220;much relief&#8221; to the markets, although some critics still question the timeline for a projected fiscal adjustment.<\/p>\n<p>The new fiscal framework will be presented next week to Congress, Ceron said. <\/p>\n<p>He said it will contain a cap on the growth of public investment if the primary surplus exceeds established targets. This could contribute to stronger primary surpluses, helping to improve the trajectory for public debt.<\/p>\n<p \/>\n<p> (Reporting by Marcela Ayres and Bernardo Caram; Editing by Brad Haynes and Aurora Ellis)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/brazil-treasury-says-foreign\/file-photo-people-walk-in-front-of-a-store-on\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3B0O8-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3B0O8-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Marcela Ayres and Bernardo Caram BRASILIA (Reuters) &#8211; Foreign investors are returning in numbers to Brazil&#8217;s public debt market, Treasury Secretary Rogerio Ceron told Reuters, just after local financial assets rallied since the government proposed new fiscal rules two weeks ago. In a late Tuesday interview, Ceron said the government expects to double the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":7873,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[],"class_list":["post-7872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3B0O8-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=7872"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7872\/revisions"}],"predecessor-version":[{"id":7874,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/7872\/revisions\/7874"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/7873"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=7872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=7872"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=7872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}