Brazil Treasury readies intervention for NTN‑B bond auction as rates surge

On Tuesday, June 7, Brazil's Treasury will hold an auction of inflation‑linked NTN‑B bonds. The market is closely watching after Treasury Secretary‑Executive Rogério Ceron warned that real yields on the securities are high and said the Treasury stands ready to intervene. In June, issuance of NTN‑B fell to just R$6 billion, the lowest volume of the year and only 4 % of total public‑debt placements, with an average issue rate of about 8 %, a level economists deem very elevated.

The Treasury’s past actions include a March repurchase of R$12.1 billion of prefixed bonds to curb a sharp rise in future‑interest rates, and a recent cancellation of offers to ease premium pressures. The scheduled auction, together with a traditional LFT auction at 11:30, follows a quiet day in domestic and U.S. economic data, but the bond market showed modest renewed appetite after Ceron’s comments.