BRASILIA, Oct 4 (Reuters) - Brazil's Treasury remains unconcerned in the face of global market jitters stemming from rising U.S. Treasury bond yields, two government officials told Reuters on Wednesday, due to little debt maturing in the short term and comfortable liquidity levels.
Brazil's currency closed at its weakest level since March on Tuesday, as risk aversion in emerging markets rose due to robust U.S. labor market data. Expectations that the U.S. Federal Reserve will keep interest rates high for longer also pushed up Brazil's interest rate futures amid robust trading volumes.
"While nobody welcomes or enjoys this volatile scenario, we are indeed at ease," said one of the sources, who requested anonymity because they were not authorized to address the matter publicly.
Both officials said that the volume of Brazilian bonds maturing in October, November and December is quite low, creating room for new issues in the final quarter of the year primarily aimed at bolstering cash reserves.
Treasury officials aim to end this year with a liquidity reserve close to 1 trillion reais ($194 billion), a level similar to what was observed at the end of 2022, said the second source. In August, reserves stood at 1.02 trillion reais, according to the latest Treasury data.
In a day of adjustments on Wednesday, the Brazilian real firmed 0.3% and interest rate futures contracts edged lower.
($1 = 5.1488 reais) (Reporting by Marcela Ayres Editing by Brad Haynes and Marguerita Choy)
