BRASILIA, March 10 (Reuters) - Brazil’s Treasury has canceled the auction of fixed rate bonds scheduled for this week “due to more restrictive financial market conditions”, it said in a statement on its website late on Monday.
The decision to cancel the “LTN” and “NTN-F” sales scheduled for Thursday, March 12, was taken with the central bank, the Treasury said.
The sale of “LFT” securities linked to the benchmark Selic rate on the same day, however, will go ahead, it added.
“The Treasury will continue monitoring market conditions, to guarantee the smooth functioning of the market for government bonds and other related markets,” the statement said.
Brazilian markets cratered on Monday, with stocks posting their biggest fall since 1998 and the central bank intervening twice in the currency market to prop up the real as local markets were swept up in the global selloff. Brazilian interest rate futures also rose sharply as risk appetite evaporated. (Reporting by Jose Gomes Neto Writing by Jamie McGeever Editing by Chizu Nomiyama)