The number of investors in Brazil’s Tesouro Direto T-note scheme increased by 454,524 in July, a 53-percent bump from the same time last year, which brings the total number of individuals involved in the program up to almost 12 million.
The growth in T-note investors unsurprisingly goes hand in hand with the Central Bank’s decision to raise the Selic benchmark interest rate to 5.25 percent, immediately increasing the returns on Tesouro Direto bonds. Financial analysts believe the Selic rate should close out the year at 7.5 percent.
T-note purchases also outweighed redemptions last month by BRL 934 million (USD 177.8 million). Investments indexed to the Selic rate made up 44.81 percent of bonds sold in July, slightly edging out those pegged to the IPCA consumer price index used to measure inflation.