BRASILIA, May 27 (Reuters) - Brazil's public debt rose

1.91% in April from the previous month, Treasury data showed on

Wednesday, in a period marked by strong issuance of securities

linked to the benchmark interest rate and volatile yields amid

external uncertainty.

The outstanding stock reached 8.798 trillion reais ($1.74

trillion), still below the 9.7 to 10.3 trillion reais range

targeted for 2026 under the Treasury's annual financing plan.

Debt issuance totaled 229.96 billion reais in the month,

including 28.87 billion reais equivalent in euros in the

government's first operation in that currency since 2014, as

part of President Luiz Inacio Lula da Silva's effort to expand

fundraising in international markets this year.

Redemptions amounted to 146.01 billion reais in April.

Floating-rate securities linked to the Selic benchmark

increased their share of total debt to 48.59%, up from 47.71%

the previous month, reflecting the Treasury's preference for

such instruments in recent auctions.

The Selic currently stands at 14.50%.

In a presentation, the Treasury said risk aversion driven by

the external environment amid the U.S.-Israel conflict with Iran

has supported demand for floating-rate bonds.

As of May 26, such securities accounted for 69.7% of total

debt offered to the market this month, compared with an already

high 56% in April.

Central bank chief Gabriel Galipolo said earlier this month that

Brazil's heavy reliance on debt indexed to the benchmark Selic

rate weakens monetary policy transmission, as higher interest

rates end up boosting disposable income for bondholders.

($1 = 5.0636 reais)