The local market for Paraguayan Treasury bonds, known as BOTES, still holds a limited weight in the country's public debt, but its structure shows a growing use of local currency financing. According to data from Paraguay's Ministry of Economy and Finance (MEF), the stock of bonds in circulation reached Gs. 9.473 trillion in the first half of 2026, equivalent to US$ 1.5576 billion, using the exchange rate of Gs. 6,081.67 per US dollar in effect on June 29.
These domestic bonds represent 7.15% of the total Public Debt and 2.36% of Paraguay's Gross Domestic Product (GDP). Although the share is modest, its strategic relevance is greater, as issuances in guaranís reduce the Treasury's exposure to exchange rate fluctuations and help develop a local yield curve, which is essential for expanding investment options.
The composition of the debt reveals a significant concentration in long-term bonds. Bonds originally issued with a 15-year maturity total Gs. 3.618 trillion, accounting for 38.2% of the total. These are followed by seven-year bonds (Gs. 1.945 trillion, 20.5%) and ten-year bonds (Gs. 1.450 trillion, 15.3%). The portfolio's weighted average nominal interest rate is 8.79%, with an average maturity of 6.78 years.
The most recent issuances, carried out between 2023 and 2026, are dominant, concentrating Gs. 7.265 trillion, or 76.7% of the total balance. The 2023 issuance holds the largest annual volume, at Gs. 2.503 trillion, while bonds issued only in 2026 already amount to Gs. 1.672 trillion, mostly in 15-year instruments with a 9.50% rate.
This high share of recent issuances indicates a consolidation of the domestic market as a source of financing. However, the average interest rate of 8.79% represents a challenge for the cost of debt service, requiring that the raised funds be applied to investments that generate sufficient economic and social benefits to justify future payments.