BRASILIA, Dec 26 (Reuters) - Brazil's federal public

debt rose 1.85% in November from the previous month, Treasury

data showed on Thursday, amid a sharp increase in bond yields

driven by fiscal concerns.

The total debt stock reached 7.204 trillion reais ($1.17

trillion), impacted by substantial interest costs and net

issuance during the month.

Year-to-date, the federal public debt has grown 10.49%,

adding 683.8 billion reais.

The government unveiled a fiscal package at the end of

November that disappointed investors, triggering a significant

sell-off in Brazilian assets and fueling a spiraling

depreciation of the currency in Latin America's largest economy.

Reflecting higher risk premiums seen by investors,

Brazilian 5-year inflation-linked bonds were trading at real

yields above 7% by late November, compared to 5.2% at the end of

last year.

The average cost of domestic issuance increased to 10.86%

per year in November, from 10.78% in October.

The Treasury's liquidity reserve, designed to provide

flexibility in debt management during market volatility, rose

4.09% in nominal terms to 856.1 billion reais in November,

enough to cover 7.25 months of obligations.

($1 = 6.1708 reais)