The great majority of the domestic bonded debt issuances take place in a competitive manner,
through auctions held by the National Treasury, through an electronic system. For each public
auction, a National Treasury Regulation is announced, making the offerings public. The other
types of issuances are: direct issuances used to meet specific requirements defined by law, and
public offerings to individuals, through the Treasury Direct program.
The main bonds offered in the domestic auctions are:
•
LTN – National Treasury Bills: bonds which yields are determined (fixed rate) upon purchase.
Form of payment: upon maturity;
•
LFT – Treasury Financial Bills: bonds which daily yields are linked to the basic interest
rate (average rate of daily operations with public bonds registered in the SELIC system, or
simply, the SELIC rate). Form of payment: upon maturity;
•
NTN-B – National Treasury Notes – B series: bonds which yields are linked to the variation of
the Consumer Price Index - IPCA, along with the interest defined upon purchase. Form of payment:
every six months (interest) and upon maturity (principal);
•
NTN-C – National Treasury Notes – C series: bonds which yields are linked to variation of the
General Price Index - IGP-M, along with the interest defined upon purchase. Form of payment:
every six months (interest) and upon maturity (principal); and
•
NTN-F – National Treasury Notes – F series: bonds with fixed rate yields, along with interest
defined upon purchase. Form of payment: every six months (interest) and upon maturity
(principal).
The auctions normally take place on Tuesdays, and issuances and financial settlement take place
on Wednesdays. In the week of the Monetary Policy Committee meetings (COPOM) the fixed rate
bonds auctions normally take place the day after the Committee’s resolutions are announced
(Thursday). The NTN-B auctions take place two working days before the 15th of each month, and
the NTN-C auctions, two working days before the fist day of each month. Public bond exchange and
purchase auctions are also held, and normally take place on Mondays.
At the beginning of each month, the National Treasury announces the auctions dates will be held
and the maximum volume to be offered (for more information see Borrowing Strategy section).
