March 30, 2023
Tesoro Diretto: Interest rates on fixed-rate government bonds hit this third record;  Negotiations were suspended twice

Tesoro Diretto: Interest rates on fixed-rate government bonds hit this third record; Negotiations were suspended twice

(Ramcarvalho/Getty Images)

São Paulo – Trading in the public bond market via Tesouro Direto resumed at approximately 1:01 p.m. Tuesday (19), after two suspensions in negotiations, due to strong fluctuations in securities prices and rates.

In such cases, investors can only buy or sell Selic Treasuries. The purpose of the stop is to ensure that transactions are always conducted at fair rates, in line with the rates followed in the secondary market.

The suspensions are linked to news that the new R$400 aid proposal in 2022 will be part of the spending cap, according to sources at Reuters. Also accompanying the market are concerns that voting on court orders issued by the Court of First Instance (PEC) may continue today, which could cause further impacts from a financial standpoint.

Read more: The Complete Guide to Investing in Government Bonds

After the stop, at 1:01 p.m., several titles offered historical bonuses. Among fixed-rate bonds, interest paid on bonds due in 2024 rose from 10.51% in the early morning to 10.64% in the afternoon. The day before, the bonus offered was 10.25% per year. This is the highest percentage offered by this title, which began trading in February 2020.

At the same time, the rate paid on maturities of papers in 2031 was 11.42% compared to 11.08% in the previous session. The value was also a record for the newspaper, which went on display in February of last year.

Interest paid on inflation-linked bonds also rose sharply before the business was suspended. The real yield paid by IPCA + Treasury with maturities in 2055 and a semi-annual interest payment was 5.30%, up from the 5.15% annual seen yesterday (18). The percentage was the highest ever paid for this role since it went live in February 2020.

Check the rates and prices of all government bonds available for purchase in the Tesouro Direto that were launched on Tuesday (19), after trading suspended:

direct treasury rates
Source: Tesouro Direto

Brazil and PEC aid for court orders

What distinguishes the local scene this afternoon is the news that the volume of aid in 2022 It will be R$400, according to the agency Reuters. According to the publication, part of the amount will consist of the Bolsa Família budget, a part of temporary assistance that, since it is not organized as an ongoing expense, will not need to be defined as a source of income.

Reuters sources reported that the program would even be renamed Auxílio Brasil, as the government had planned, and that it would maintain its 34.7 billion R$ budget for the next year.

In order to deliver this program with increased income, interviewees interviewed by the agency stated that part of the assistance will be paid within the spending cap and part outside it.

Another topic that could generate more volatility in today’s session is the possible vote on the former Presidential Election Commission on a special committee of the Chamber.

The financial noise raised the alert in the central bank. Today, the Monetary Authority held the first dollar auction on the spot exchange market since March 15. The value to be offered is 500 million US dollars. Previously, the monetary authority acted only through swaps conversion rate.

Another issue that has gained momentum in recent days is fuel. Newspaper headlines State of Sao Paulo This Tuesday, for example, he brought in an interview with Roberto Castillo Branco, the former president of Petrobras. He told the newspaper that he had been subjected to “ridiculous lies” and “digital militia attacks” for refusing to comply with truck drivers’ fuel price requests.

This is Castelo Branco’s first interview since he was sacked in April, amid pressure from the government to intervene over fuel prices. Since then, he has been quarantined for six months during which he has not spoken.

International dinner

In the offshore scenario, attention is focused on the US balance sheet season. Of the 41 S&P index companies that reported results for the third quarter, 80% beat expectations, according to FactSet data.

Read also: Is it worth investing in savings if Selic continues to rise? See comparison with generic title and CBD

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