Treasury Direct today: Rates open week high; rift between Lula and BC pulls risk premium

Public bonds in the Direct Treasury price disagreements between Lula and BC (Image: REUTERS/Adriano Machado)

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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