Tesouro Direto: optimism with reform is shaken by Treasuries and fixed rates fall to 11.28%

The rise in income of Treasuries (American Treasury bonds) on Thursday morning (9) ended up ruling out more optimistic movements in the Treasury Direct public bond market and in future interest rates, which could have seen a session of more significant declines.

In the second update of the day, the returns offered by fixed-rate securities showed a slight drop, while the returns on securities linked to inflation retreated or were close to stability.

Daniel Leal, fixed income strategist at BGC Liquidez, states that the expectation is that Thursday would be better for interest rates after the approval of the tax reinforcement in the Senate, the day before (8).

“But this movement was counterbalanced by the rise in Treasuries abroad, which are opening 7 bps [7 pontos-base ] after several falling sessions since the Fomc meeting”, says the strategist.

At around 12 pm (Brasília time), the yields delivered by the ten-year bond were at 4.564%, above the 4.527% seen in the previous session.

According to Leal, concerns that rates in the United States will remain high for longer continue to weigh on the market. According to the CME Group monitor, the expectation for a maintenance of interest rates at the next Federal Reserve (Fed, American central bank) meeting in December is currently at 90%.

Thursday (9) will also see more comments from Fed directors and the president of the monetary authority himself, Jerome Powell.

In the second update of the day, the highest interest rate delivered by fixed rates was 11.28%. The return was offered by the Prefixed Treasury 2033, which yesterday (8) offered a rate of 11.31%.

The day is the suspension of IPCA+2055 Treasury business, due to coupon payments, which will take place on November 16th.

According to a Treasury Direct rule, investment in securities that have an interest coupon is suspended four business days before the payment date. Likewise, there are changes to redemptions, which are interrupted two business days before the coupon is paid.

Check the prices and rates of public bonds available for purchase at Tesouro Direto this Thursday morning (9):

Tax reform is approved

The plenary of the Federal Senate approved, this Wednesday (8), the opinion of Senator Eduardo Braga (MDB-AM) for the Proposed Amendment to the Constitution that deals with tax reform of consumption taxes. There were 53 votes in favor and 24 against the text in both rounds − at least 49 votes were needed (that is, the equivalent of 3/5 of the legislative house).

As there were changes in relation to the version approved by the Chamber of Deputies, the proposal will need to undergo a new analysis in the initiating house. For it to be forwarded to the National Congress for promulgation, both legislative houses must approve the same version on the merits.

Among the main changes proposed by the text formulated by senators are changes in benefits to the Central-West and Northeast, in addition to the “extended” basic food basket and cashback. Understand all changes.