Brazil Public Debt Rises 0.97% to 9.38 Trillion Reais in September on Interest Costs

Brazil's public debt climbed 0.97% in September from August to 9.383 trillion reais ($1.76 trillion), driven largely by interest expenses, Treasury data showed on Thursday. Interest costs totaled 89.5 billion reais for the month and 784.4 billion reais year-to-date, dominating debt accumulation. Issuance of 189.4 billion reais was almost entirely offset by redemptions of 188.7 billion reais, while net debt redemptions reached 36.5 billion reais so far this year. The Treasury projects the total federal public debt stock to end 2026 between 9.7 trillion and 10.3 trillion reais. It also said it bought back 31.6 billion reais ($5.9 billion) of government bonds over Monday and Tuesday, after the Sunday re-election of leftist President Luiz Inacio Lula da Silva triggered a market selloff. The buybacks aimed to support "the proper functioning of the market amid the repricing of assets and the adjustment of positions," the Treasury said.