Brazil Plans to Boost Liquidity of 10-Year Foreign Bond

Brazil’s priority in the foreign debt market is to increase the liquidity of its 10-year real-denominated bond, Deputy Treasury Secretary Paulo Valle said.

“The market for reais and dollars have improved a lot,” Valle said today in an interview from Brasilia. The Treasury may sell bonds denominated in dollars or reais in its next overseas issue, he said.

The government of Latin America’s biggest economy hasn’t sold real-denominated bonds overseas since October 2010, when it placed 1.1 billion reais ($611 million) of notes due 2028 to yield 8.85 percent. It sold $825 million of its 2021 dollar bonds on Jan. 3.

The Treasury is planning to sell notes abroad in the coming weeks, Treasury Secretary Arno Augustin said March 8.

The yield on Brazil’s real denominated bonds maturing in 2022 fell 4 basis points, or 0.04 percentage point, to 8.04 percent at 2:52 p.m. in Sao Paulo.

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