Government bonds — Tesouro Direto
Tesouro Selic — the floating, low-volatility bond
4 min
Tesouro Selic is a floating-rate government bond whose return tracks the Selic policy rate, day by day. It is the single most recommended starting point for an emergency reserve in Brazil.
Why its price barely moves
Most bonds swing in value when interest rates change (see the mark-to-market lesson). Tesouro Selic is built to follow the rate rather than be repriced by it, so its market value rises steadily and almost never falls. That makes it the rare government bond you can sell early, on almost any day, without a meaningful capital loss.
What that makes it good for
- An emergency fund — safe, low-volatility, and redeemable any business day.
- Parking cash you may need at short notice.
- A first investment for someone moving money out of poupança.
The quote and the small spread
You will see it quoted as "Selic + 0.10%" or similar. The Selic part is the bulk of the return; the small fixed spread is a market adjustment. Because the floating part dominates, your return rises and falls with the central bank’s rate decisions.
Things to keep in mind
- It is subject to income tax on gains (the regressive table, covered later) and a tiny custody fee charged by the exchange.
- Despite those costs, at high Selic levels it typically out-earns poupança while staying just as accessible.
A common, sensible plan: keep your emergency reserve in Tesouro Selic, and use the other bond types for money you can commit for longer.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.