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. Simultaneously, FPD management seeks to contribute to the proper functioning of the Brazilian public bond market.

To achieve this objective, the following qualitative guidelines lead FPD financing strategy:

• Gradually replacing floating-rate bonds for fixed-rate or inflation-linked instruments;
• Smoothing the maturity structure, with special attention to short-term debt;
•  Increasing the average maturity of outstanding debt;
• Developing the yield curve;
• Increasing liquidity of federal public bonds on the secondary market;
• Broadening the investor base;

Click here for specific External Federal Public Debt - EFPD guidelines.