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BRASILIA: Brazil’s federal public debt increased 2.25% in February from the month before to 6.595 trillion reais ($1.32 trillion), the Treasury said on Thursday.

The outcome followed a net issuance of 90.21 billion reais, along with interest charges of 55.22 billion reais for the period.

The Treasury stressed in a statement that the month was marked by a sharp rise in global interest rates, driven by persistent inflationary pressures and the strength of the US economy.

Nevertheless, the average interest rate on domestic federal debt issuances decreased from 11.56% in January to 11.51% in February.

The country’s domestic debt accounts for 95.8% of the total. Meanwhile, the Treasury’s liquidity reserve, aimed at providing flexibility in debt management amid market volatility, rose to 885.10 billion reais from 813.24 billion reais the month before.

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