July Treasury Direct Sales of Securities Exceed Redemptions by R$440.7 Million

RIO DE JANEIRO, BRAZIL – Treasury Direct sales of bonds and other securites totaled R$2.656 billion (US$664 million) in July. Redemptions totaled R$2.216 billion. As a result, there was a net issuance of R$440.7 million, reported today, August 27th, the National Treasury Secretariat.

Regarding redemptions, R$2.123 billion were related to repurchases and R$92.2 million to bond maturities.

In July, 545,576 operations were carried out to sell securities directly to investors. According to the National Treasury, the use of the program by small investors “can be noted by the considerable number of sales of up to R$5,000.00, corresponding to 86.0 percent of the sales made in the month.” The average amount per operation was R$4,869.62.

The most demanded securities by investors were those indexed to the Selic rate (Selic Treasury), which totaled R$1.31 billion, representing 49.46 percent of sales. Inflation-linked securities (Treasury CPI+ and Treasury CPI+ Semiannual Interest) totaled R$928.85 million in sales, corresponding to 34.96 percent of the total, while sales of fixed-rate securities (Treasury Fixed Rate and Treasury Fixed Rate with Semiannual Interest) totaled R$413.87 million, the equivalent to 15.58 percent.

The largest share of sales was concentrated in securities maturing between five and ten years, which accounted for 75.27 percent of the total. Subsequently, investments in securities with maturities over ten years represented 22.01 percent, while securities maturing between one and five years accounted for 2.72 percent of the total.

Inventory

In July 2019, the program’s stock reached R$57.81 billion, a 1.53 percent increase in relation to the previous month (R$56.94 billion).

According to the Treasury, price-indexed securities continued to be the most representative in the stock, totaling R$27.73 billion, representing 47.96 percent of the total. In the aftermath, Selic-indexed securities totaled R$20 billion (34.60 percent) and fixed-rate securities, which totaled R$10.02 billion, or 17.33 percent of the total. Finally, securities indexed to the General Market Price Index (IGP-M) totaled R$61.35 million (0.11 percent).

Investors

In July 2019, the total number of active investors in the Treasury Direct, in other words, those who are currently investing in the program reached the mark of 1,109,363 people.

Last month, 36,373 investors became active, a growth of 3.39 percent over the previous month. The increase in the number of investors enrolled in the program reached its second-highest figure in the historical series, 227,680, representing an increase of 5.23 percent when compared to June, totaling 4,578,915 people.