The Brazilian National Treasury is preparing a structural pivot toward international capital markets, driven by unprecedented strain in the domestic inflation-linked bond market. Issuance of the NTN-B (Tesouro IPCA+), Brazil’s inflation-indexed bond, has fallen to its lowest level in two decades, representing a reported 1.64% of total domestic debt issuance in July, forcing the government to aggressively increase its external funding capacity. This internal funding pressure signals a fundamental shift in debt strategy, forcing the Treasury to replace its nearly exhausted US$100 billion external debt ceiling with a request for a new US$35 billion annual limit from the Senate.