Bonds sold under Direct Treasury exceed redemptions by over BRL 1.3 bi
The sales of bonds under Brazil’s Direct Treasury program (Tesouro Direto in the original) exceeded redemptions by BRL 1.306 billion in November this year. According to data from the National Treasury released today (Dec. 21), in Brasília, sales under the initiative reached BRL 2.993 billion last month. Redemptions added up to BRL 1.687 billion—BRL 1.606 billion of which linked to repurchases and BRL 80.6 million to maturities, when the bond’s term ends and the government must reimburse the investor with interest.
The most sought-after bonds among investors were those adjusted against Brazil’s benchmark interest rate—the Selic—which corresponded to 47.1 percent of the total. Bonds linked to the inflation, as gauged by the country’s National Broad Consumer Price Index (IPCA), accounted for 35.2 percent of sales, while fixed-rate bonds, with interest set at the time of issuance, accounted for 17.6 percent.
As for profitability month to date, November’s highlight was the Tesouro IPCA+ 2045 bond, maturing on May 15, 2045, which recorded a 10.64 percent change.
The program’s total stock reached BRL 76.60 billion at the end of November—up 2.8 percent from the previous month (BRL 74.52 billion) and up 23.4 percent from November last year (BRL 62.07 billion).
Investors
Regarding the number of investors, 1,251,988 new participants signed up for the initiative in November. Investors added up to 15,418,110, up 72.4 percent in the last 12 months. The total number of active investors (with open trades) reached 1,735,366—an increase of 26.1 percent in 12 months. In the month, the increase was 28,076 new active investors.
The use of Direct Treasury by small investors can be seen in the considerable number of sales of up to BRL 5 thousand, which corresponded to 82.6 percent of the total of 433,163 sale operations effected in November. Investments of up to BRL 1 thousand alone represented 63.2 percent. The average amount per operation was BRL 6,910.26.
As it stands today, investors are reported to prefer medium-term bonds. Sales of bonds with a maturity of one to five years represented 67.4 percent, and those with a maturity of five to ten years 25.3 percent of the total. Bonds with a tenor of more than ten years stood at 7.2 percent of sales.
The program’s full balance sheet can be found on the National Treasury’s website.
Source of funding
The Direct Treasury was created in January 2002 to popularize this type of investment and allow individuals to purchase government bonds online directly from the National Treasury, with no need for intermediary agents. All investors need is to pay a fee to the broker in charge of the bond custody.
Selling bonds is one of the ways in which the government may raise funds to pay debts and honor commitments. In exchange, the National Treasury pledges to return the amount plus an additional value that may vary according to the Selic, inflation indexes, the exchange rate, or a rate set in advance, as is the case with fixed-rate bonds.
This article was translated using artificial intelligence and was proofread by a human translator.
