Treasury Direct: How It Works and How to Get Started 2025

What is Treasury Direct?

Treasury Direct is a program launched by the Brazilian Federal Government in 2002 to allow individuals to invest in government bonds in an accessible and secure manner. It works like a loan to the government: you purchase a bond and, in return, receive interest on the invested amount.

This investment is considered one of the safest in the Brazilian financial market, as it is backed by the National Treasury. Additionally, Treasury Direct offers different types of bonds, each with specific characteristics that cater to different investor profiles.

How Does Treasury Direct Work?

Treasury Direct allows the purchase and sale of government bonds through an online platform. Each bond has a maturity period and a specific way of generating returns, which can be fixed, tied to inflation, or linked to the Selic rate.

When investing in Treasury Direct, you can choose to:

• Hold the bond until maturity, receiving the promised return.
• Sell the bond before maturity, subject to market price fluctuations.

The bonds available in Treasury Direct are:

1. Treasury Selic (LFT): Linked to the Selic rate, suitable for emergency funds and conservative investors.
2. Treasury Fixed-Rate (LTN): Has a fixed interest rate, ideal for those seeking predictability.
3. Treasury IPCA+ (NTN-B Principal and NTN-B): Linked to inflation (IPCA), ensuring real gains for the investor.

How to Start Investing in Treasury Direct

1. Open an Account with a Brokerage Firm

To invest in Treasury Direct, you need an account with a brokerage firm authorized by the National Treasury. Some brokerages do not charge an administration fee, which can be advantageous for investors.

2. Choose the Ideal Bond

Each bond meets a specific financial goal. Therefore, it is essential to analyze:

• Maturity period: When you intend to redeem the money.
• Type of return: Fixed-rate, floating-rate, or inflation-linked.

3. Make Your First Investment

After choosing the bond, simply transfer the money to the brokerage firm and make the purchase. The minimum investment amount is usually low, often less than R$ 50.

4. Monitor Your Investment

Bond yields can fluctuate over time. Therefore, it is advisable to periodically monitor performance and assess whether adjustments to your strategy are needed.

Advantages and Disadvantages of Treasury Direct

Advantages

• Security: Backed by the Federal Government.
• Accessibility: Low initial investment.
• Variety of bonds: Options for different investor profiles.
• Liquidity: Possibility to redeem money before maturity (with price fluctuation).

Disadvantages

• Taxation: Income tax on earnings.
• Price variation: Risk of loss if sold before maturity.
• B3 Fee: A small annual custody fee.

Conclusion

Investing in Treasury Direct is an excellent option for those seeking security, diversification, and solid returns. However, it is crucial to understand the characteristics of each bond and align investments with financial goals.

Now that you know how Treasury Direct works and how to get started, why not take the first step toward financial independence? Share your questions or experiences in the comments!

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