Primary Market Transactions
In November, Federal Public Debt – DPF issuances reached R$ 16.5 billion and redemptions corresponded to R$ 13.2 billion, resulting in net issuances of R$ 3.2 billion (R$ 4.4 billion refers to net issuances of Domestic Federal Public Debt – DPMFi and R$ 1.2 billion refers to net redemptions of the External Federal Public Debt – DPFe).
The DPF outstanding held by the public increased 2.16%, moving from R$ 1,345.4 billion in October to R$ 1,374.4 billion in November. The DPMFi outstanding (which represents 90.5% of the DPF) increased 1.48% shifting from R$ 1,226.3 billion to R$ 1,244.4 billion in the same period, due to interest appropriation of R$ 13.7 billion and to net issuances of R$ 4.4 billion.
The share of fixed-rate bonds on the DPMFi increased from 31.5% in October to 31.6% in November. The share of floating-rate (Selic) securities moved from 36.3% in October to 36.6% in November. On its turn, the share of inflation linked bonds decreased from 29.75% to 29.15% in the same period.
DPF maturities in the next 12 months increased from 24.65% in October to 25.29% in November. Almost 51% of DPMFi securities scheduled to mature in up to 12 months corresponds to fixed-rate securities, followed by floating-rate (Selic) securities (32.5%).
Average Term to Maturity
The average DPF term decreased, moving from 42.75 months in October to 42.33 months in November.
Average DPF life, which indicates the remaining term of public debt principal, decreased from 67.90 months in October to 67.26 months in November. Mind this indicator as the most appropriate one for cross country comparisons.
DPF Average Cost
In cumulative 12-month terms, the average cost of DPMFi moved from 13.5% per year in October to 13.6% per year in November, due to an increase registered in Selic rate and Fx-rate during the last month. With regard to the DPFe, the average cost moved from 32.4% per year in October to 41.7% in November, mainly as a result of considerable US dollar appreciation against BRL real (10.3% in November 2008) when compared with the same month of the preceding year (2.3%). As a result, the DPF average cost in cumulative 12-month terms moved from 14.8% per year in October to 15.7% in November.
The full document of the Federal Public Debt monthly Report – November 2008 (Portuguese only) can be found at http://www.tesouro.fazenda.gov.br/hp/downloads/divida_publica/relatorio_nov08.pdf
The full English version of this report will be released soon at http://www.tesouro.fazenda.gov.br/english/hp/public_debt_report.asp.