Brazil Floating-Rate Debt Share Hits Record 52.7%, Raising Fiscal Risk

Brazil's share of debt tied to the Selic benchmark rate rose to 52.7% in August from 51.1% in July, Treasury data showed on September 28, 2026, worsening the country's debt profile and exposing liabilities more directly to monetary policy. The increase came one month after the Treasury raised its 2026 ceiling for floating-rate debt to 53%. Despite an easing cycle launched in March, the Selic rate stands at 13.75%, among the world's highest real rates. Federal public debt edged up 0.04% in August to 9.293 trillion reais ($1.78 trillion), driven by 88.4 billion reais in interest costs. The government posted a net debt redemption, with issuance of 211.6 billion reais against 296.1 billion reais in maturities. The data highlights Brazil's trade-off: high rates contain inflation but raise debt-servicing costs.