Brazil’s federal domestic debt jumps 3 pct in Feb

* Stock of gov’t debt in securities rises 3 pct in Feb

* Fixed-rate debt rises as percentage of total

* Treasury seeks to reduce share of floating-rate debt

BRASILIA, March 24 (BestGrowthStock) – Brazil’s stock of Treasury
notes and bonds in circulation climbed in February after the
government issued three times more in securities than it
redeemed to pay for growing spending, the National Treasury
said on Wednesday.

Federal debt in marketeable securities rose 3 percent to
1.397 trillion reais ($775.2 billion), with net debt issuance
totaling 30.2 billion reais.

The Treasury paid down 11.74 billion reais of maturing
securities last month, it said in a report.

The results provide fresh evidence that a boost in
government spending during the global financial crisis
continued to weigh on the country’s public accounts.

President Luiz Inacio Lula da Silva boosted spending last
year to help pull the economy out of a brief recession, and
analysts said the steps, although successful, are now taking a
toll on the government’s finances.

The share of fixed-rate bonds as part of the overall debt
expanded to 30.27 percent of the total in February compared to
29.58 percent in the month prior.

Securities indexed to the central bank’s Selic lending rate
fell to 37.66 percent of the total, from 38.15 percent in
January.

Dollar-linked debt fell to 0.74 percent from 0.78 percent
in the month prior.
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($1=1.802 reais)
(Reporting by Isabel Versiani; Writing by Ana Nicolaci da
Costa; Editing by Guillero Parra-Bernal and Kenneth Barry)

Brazil’s federal domestic debt jumps 3 pct in Feb