The profitability rates of public titles traded in Treasury Direct jumped this Monday (6), with the future yield curve opening even more this beginning of the week, as the disagreements between Lula and the central bank intensify.
Around 10:20 am (Brasília time), the Treasury IPCA+ 2029 yielded 6.38% per year above inflation, with each minimum contribution at R$ 54.76.
At the last closing date on Friday (3), the same public bond offered a rate of 6.29% per annum, with a minimum investment of R$ 55.02.
At mark to marketthe Treasury IPCA+ 2029 registers a devaluation of 0.47% in its price, with the value falling from BRL 55.02 to BRL 54.76 and harming those who need or want to sell the public bond before maturity.
The rift between Lula and BC heats up
The rift between the president Luiz Inacio Lula da Silva (PT) with the Brazilian Central Bank, (responsible for combating inflation and in command of Selic rate) continues to shake up the backstage in Brasilia, demanding higher risk premium for those who lend money to the Brazilian government.
This morning, the DI contracts (Jan/2025) rose from 13.27% to 13.35% per annum. The contracts (Jan/2029) jumped from 13.33% to a rate of 13.40% per annum. This shows the degree of speculation in the interest rate market.
For Rafael Passo, an analyst at Ajax Investimentos, one of the BC’s points of concern with the Lula government is the unbridled expansion of credit.
“If the credit rates promoted by the government are not very sensitive to the BC’s actions, this could result in higher real interest rates because of their effects on the power of monetary policy”, he explains.
According to journalist Mônica Bergamo, from Folha de S. Paulo, Lula considers that Roberto Campos Neto betrayed the government’s trust and tries to drag the country into a recession.
Lula and ministers of his government seem to have deposited in the president of the central bank willingness to dialogue and participate in a joint effort so that the Brazil overcome economic problems.
Check the rates of the Direct Treasury today (06/02/2023)
Check prices and fees for all fixed income government bonds available for purchase and sale on Treasury Direct that were offered around 10:20 am this Monday (6):
| Prefixed Titles | annual profitability | minimum investment | Unit price | Maturity |
|---|---|---|---|---|
| PREFIXED TREASURY 2026 | 13.25% | BRL 34.86 | BRL 697.36 | 01/01/2026 |
| PREFIXED TREASURY 2029 | 13.47% | BRL 33.32 | BRL 476.08 | 01/01/2029 |
| PREFIXED TREASURY with semiannual interest 2033 | 13.39% | BRL 33.43 | BRL 835.90 | 01/01/2033 |
| Post-fixed securities | annual profitability | minimum investment | Unit price | Maturity |
|---|---|---|---|---|
| SELIC TREASURE 2026 | SELIC + 0.0986% | BRL 127.58 | BRL 12,758.47 | 03/01/2026 |
| SELIC TREASURE 2029 | SELIC + 0.1775% | BRL 126.60 | BRL 12,660.74 | 01/03/2029 |
| Inflation Securities | annual profitability | minimum investment | Unit price | Maturity |
|---|---|---|---|---|
| IPCA+ TREASURE 2029 | IPCA + 6.38% | BRL 54.76 | BRL 2,738.16 | 05/15/2029 |
| IPCA+ TREASURE 2035 | IPCA + 6.51% | BRL 37.26 | BRL 1,863.13 | 05/15/2035 |
| IPCA+ TREASURE 2045 | IPCA + 6.54% | BRL 39.48 | BRL 987.15 | 05/15/2045 |
| IPCA+ TREASURE with semiannual interest 2032 | IPCA + 6.41% | BRL 40.32 | BRL 4,032.86 | 08/15/2032 |
| IPCA+ TREASURE with semi-annual interest 2040 | IPCA + 6.50% | BRL 39.45 | BRL 3,945.26 | 08/15/2040 |
| IPCA+ TREASURE with semiannual interest 2055 | IPCA + 6.50% | BRL 38.27 | BRL 3,827.60 | 05/15/2055 |
| Retirement Bonds | annual profitability | minimum investment | Unit price | Maturity |
|---|---|---|---|---|
| INCOME TREASURE+ extra retirement 2030 | IPCA + 6.51% | BRL 44.57 | BRL 1,485.87 | 12/15/2049 |
| INCOME TREASURE+ extra retirement 2035 | IPCA + 6.53% | BRL 32.43 | BRL 1,081.11 | 12/15/2054 |
| INCOME TREASURE+ extra retirement 2040 | IPCA + 6.53% | BRL 31.54 | BRL 788.74 | 12/15/2059 |
| INCOME TREASURE+ extra retirement 2045 | IPCA + 6.52% | BRL 34.62 | BRL 577.13 | 12/15/2064 |
| INCOME TREASURE+ extra retirement 2050 | IPCA + 6.51% | BRL 33.81 | BRL 422.65 | 12/15/2069 |
| INCOME TREASURE+ extra retirement 2055 | IPCA + 6.50% | BRL 30.97 | BRL 309.79 | 12/15/2074 |
| INCOME TREASURE+ extra retirement 2060 | IPCA + 6.50% | BRL 31.68 | BRL 226.32 | 12/15/2079 |
| INCOME TREASURE+ extra retirement 2065 | IPCA + 6.50% | BRL 31.41 | BRL 165.36 | 12/15/2084 |
Source: Moneytimes
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