What are the types of government bonds? See the available options!

Discover the types of public securities and the characteristics of each one!

In recent years, the types of public bonds from Tesouro Direto have begun to attract the attention of beginner and conservative investors (who prioritize security when making financial investments).

After all, we are talking about an investment that is as safe as savings, but which offers a more attractive return.

And if you are thinking about investing in Tesouro Direto, be sure to read this article. We have prepared a guide on government bonds, their advantages and risks.

Read on for more information.

What are government bonds?

Public bonds are issued by the National Treasury to finance the activities of the Federal Government.

This means that whoever is investing in Tesouro Direto is basically lending their money to the government.

On the Tesouro Direto platform, You can analyze the types of government bonds that are for sale.

The return on the investment may be fixed (defined at the time of contracting), linked to the variation of the Selic (the economy's basic interest rate) or the IPCA (Broad National Consumer Price Index), which is the official inflation indicator in Brazil.

Payment of the title's maturity is made upon maturity or upon early sale of the paper.

But it is important to remember that in advance sales, fixed-income securities and those linked to the IPCA are subject to the so-called marking to market, which is a daily update in the prices of fixed-income securities.

What are the types of government bonds?

As Tesouro Direto is guaranteed by the National Treasury, it is considered one of the safest investments in the country.

However, each security has its own characteristics, which obviously must be taken into account by investors.

To understand better, learn about the characteristics of the fixed-rate Treasury, Selic and IPCA.

Prefixed Treasury

The fixed-rate Treasury Direct is a fixed-income security with interest rates determined at the time of contracting.

This means that when you purchase the title, you will know exactly how much you will receive on the maturity date.

However, this will occur as long as the title is held until the end date agreed upon at the time of purchase.

This option is recommended for those who want more predictability when investing.

Prefixed Treasury with semiannual interest

Basically, the difference between this title and the previous one is that interest is received every six months.

Therefore, it is a good option for those who want to obtain income every six months with an interest rate, which was determined in advance on the date of acquisition of the title.

Selic Treasury

The Tesouro Selic has this name because its remuneration is linked to the Selic Rate, Brazil's basic interest rate.

Due to the increase in the Selic rate in recent months, many investors have started to take an interest in this security.

Just like other types of government bonds, the Selic Treasury has an expiration date and minimum investment amount.

Of all the options available, this is the one with the lowest risk in the event of early redemption or sale.

For this reason, the Tesouro Selic is recommended for those who are building an emergency reserve.

However, it is important to remember that profitability depends on the basic interest rate. This means that if it falls, the return will be lower.

IPCA Treasury

The IPCA Treasury is a hybrid investment.

Part of the profitability rate is linked to the IPCA, that is, it is variable. The other part is fixed.

One of the great advantages of this investment is that it allows the investor to maintain real profitability, that is, above inflation.

This way, you maintain your purchasing power over time.

IPCA Treasury with semi-annual interest

When you invest your money in the Treasury with semi-annual interest, you receive income every six months.

For this reason, it is a recommended option for those who want to supplement their income.

What are the advantages of Tesouro Direto?

See the main advantages of investing in government bonds:

Affordable investment

Accessibility is one of the great advantages offered by the main types of public securities.

With just over R$ 30, you can start investing in Tesouro Direto.

Security

Like other fixed income securities, Tesouro Direto stands out for its security.

And this is one of the reasons why government bonds are so sought after by beginner investors, conservative investors or those who want to diversify their portfolio.

This investment is considered low risk because it is 100% guaranteed by the National Treasury.

Profitability

Tesouro Direto is a good investment for those who want to increase their wealth safely, especially if the focus is on the medium and long term..

Therefore, if you want to avoid low savings yields, government bonds can be a great option for your portfolio.

What are the risks of investing in Tesouro Direto?

As you already know, government bonds are recommended for those who want to invest safely.

But, although the risks are very low, you need to know about them. So, we'll show you what they are:

• Market risk: represents the risk of variation in the price of securities over time.

• Credit risk: Whoever buys a government bond is lending money to the government. In other words, the government is the debtor and the investor is the one who makes the credit available. Although this risk exists, it is very low, as the probability of the government not paying its debts is minimal.

• Liquidity risk: Liquidity is the ability to convert an asset into cash without significant losses. However, considering that government bonds have high liquidity, since the government guarantees the repurchase of the securities on business days, this risk is also low.

Conclusion

Now you know what types of public securities there are and the characteristics of each one.

But before making investments, access the Tesouro Direto platform and analyze the available public bonds.

This way, you can find the option that best suits your profile and financial goals!