* Risk aversion key to determine Brazil's next debt sale
* Brazil's first global debt sale of year could take longer
* Domestic problems also weigh on investors' uncertainty
BRASILIA, Feb 26 Brazil will sell global bonds
when market volatility subsides, Treasury chief Arno Augustin
said on Tuesday, signaling that a spike in risk aversion is
weighing on the country's decision to offer paper abroad.
Augustin's comments come a day after a government official
told Reuters that market conditions were "not good" for a debt
sale in the short-term, reaffirming views that the country's
next global debt offer could take some time.
"The timing will depend on lower volatility," Augustin told
reporters in Brasilia. "We are evaluating and we should (sell)
in the coming weeks to show that the fundamentals of Brazil are
Investors' aversion to risk in major emerging markets rose
to levels not seen since the end of November when markets were
worried about a looming U.S. fiscal cliff, according to JP
Morgan's benchmark EMBI Plus index.
Risk aversion has risen this week as the prospect of a
political stalemate in Italy could mean more trouble for an
already crisis-stricken Europe.
In September, Brazil sold $1.35 billion 10-year global bonds
to yield 2.686 percent, the lowest rate ever, as developed-world
investors sought emerging-market yields more than bonds in their
Since then yields of Brazilian global bonds have risen
steadily on growing risk aversion as well as the perception that
the country's credit standing has weakened from two years of low
economic growth and high inflation.
Brazil will not sell debt abroad unless financing terms
improve from that last sale, a government official said on
condition of anonymity.
Brazil's benchmark 10-year global bond
currently yields at 3.027 percent.