By Brazil Stock Guide – Brazil’s stock exchange B3 SA (B3SA3) introduced on Thursday the Tesouro Selic B3 Index (TSLC), the first benchmark for local government bonds.
The TSLC tracks the performance of Letras Financeiras do Tesouro (LFTs), floating-rate government securities issued by Brazil’s National Treasury and tied to the Selic policy rate, according to Money Times. The index is designed to give investors greater transparency and a reliable reference for fixed-income portfolios.
“The creation of the Tesouro Selic B3 Index reflects the commitment of Brazil’s exchange to deliver products tailored to the specific needs of the local financial market. With this benchmark, investors will have a robust tool to analyze and monitor the dynamics of government securities,” said Hênio Scheidt, B3’s product manager.
Methodology
Only the most liquid and representative bonds will be included in the index. Their weighting is based on both market value and average daily trading volume. To be eligible, LFTs must:
- have been issued at least two months earlier,
- carry a maturity of at least 12 months,
- and rank among the top 75% in secondary-market trading over the past three months.
Rebalancing
The TSLC will be rebalanced quarterly, on the fifth business day of January, April, July and October. The periodic review ensures the index reflects the evolving liquidity and composition of the LFT market.