With launch in March, new Treasury Direct title will have 24-hour liquidity; see how it will work
Brazil's Treasury Direct is set to launch a new public security in March allowing for 24-hour investments and withdrawals, aiming to provide greater stability for investors.
In March, Brazil's Treasury Direct will introduce a new public security called Tesouro Reserva, which offers 24-hour liquidity for investments and withdrawals, including weekends and holidays. This initiative will be made possible through a new operational platform, enhancing accessibility for investors. The minimum investment required is R$ 1, making it accessible to a larger audience.
Tesouro Reserva is a post-fixed income security that tracks the Selic rate on all business days, providing returns similar to an existing investment, the Tesouro Selic. However, the key advantage of Tesouro Reserva is that investors are shielded from potential losses during periods of market volatility. The National Treasury emphasizes that the value of this new title will not experience negative fluctuations, which offers greater predictability and stability for investors, especially if they need to redeem their investment early.
Currently, the Treasury is piloting this new product in collaboration with Banco do Brasil, focusing on fine-tuning its operational capabilities. The introduction of Tesouro Reserva is seen as a significant step towards modernizing Brazil's public investment offerings, catering to both novice and experienced investors who seek reliable and stable investment options.