Brazil’s stock of Treasury notes slid in July

* Repayments exceed issuance in July, Treasury says

* Share of inflation-linked debt rises

BRASILIA, Aug 19 (BestGrowthStock) – Brazil’s stock of Treasury
notes and bonds in circulation fell in July after repayments
exceeded new debt issuance by 19.4 billion reais ($11 billion),
the National Treasury said on Thursday.

Federal debt in marketable securities fell 0.5 percent in
July to 1.51 trillion reais ($859 billion,) the Treasury said.
The drop was partially offset by an increase of 12.01 billion
reais in interest payments, which have climbed over the past
five months after the central bank raised borrowing costs to
head off inflation.

Investors use the indicator as a gauge of the government’s
ability to control spending and remain solvent. Massive sales
of debt to help replenish the capital base of state development
bank BNDES and fund key infrastructure programs have prevented
the national debt from falling further this year after hitting
historic lows in 2008.

The share of fixed-rate bonds as part of the overall debt
fell to 34.13 percent in July from 35.27 percent in June while
the proportion of securities indexed to the central bank’s
Selic lending rate (BRCBMP=ECI: ) rose to 34.24 percent from
33.57 percent.

The share of inflation-linked bonds rose to 29.91 percent
of total debt in June from 29.46 percent in May. Investors tend
to snap up inflation-linked debt during times of accelerating
consumer prices, as inflation erodes the value of fixed income
securities.
($1=1.758 reais)
(Reporting by Isabel Versiani; Writing by James Matthews;
Editing by James Dalgleish)

Brazil’s stock of Treasury notes slid in July