Objectives and Guidelines
The objective defined for Federal Public Debt (FPD) management is that of efficiently meeting federal government borrowing requirements at the lowest possible long-term financing cost, while maintaining prudent risk levels. At the same time, FPD management seeks to contribute to the smooth operation of the Brazilian public bond market.
The guidelines for FPD management are:
- Gradually replacing floating rate bonds with fixed rate or inflation-linked instruments;
- Increasing the average maturity of outstanding debt;
- Smoothing the maturity structure, with special attention to short-term debt;
- Developing the yield curve on both domestic and external markets;
- Growth in the liquidity of federal public securities on the secondary market;
- Broadening the investor base;
- Improving the External Federal Public Debt -EFPD profile through issuances of benchmark securities, buybacks and structured operations.
For more information, please consult the Annual Borrowing Plan.