Primary Market Strategy
The strategic planning framework of the FPD is structures in 3 stages. In the first one is discussed what is the target profile for the long-term debt (benchmark). Then, is important to observe the medium-term horizon and evaluate the opportunities, restrictions and the challenges to achieve the target debt structure. The main debate, in this case, is about the speed of the convergency to the benchmark process. Finally, the short-term (one year) strategy is defined, which constitutes exactly the Annual Borrowing Plan (ABP) objective.
In each moment, the market conditions are observed to put the bonds and choose among the most appropriated alternatives. In scenarios of higher volatilities and monetary conditions tightening it is possible to exist trade-offs, which can impede the National Treasury from advance simultaneously in all guidelines and dimension of the long-term reference.
In this regard, the ABP elaboration took account the FPD's objectives and guidelines, the macroeconomic scenarios, the Federal Government financial needs estimation and different strategies of public debt bonds issuance
For more information, consult the Annual Borrowing Plan.