How to Invest in Brazilian Government Bonds (Tesouro Direto) – Complete Guide for US Investors


Many US investors are looking for high-yield opportunities abroad, and one of the most attractive options today is investing in Brazilian Government Bonds. Known locally as Tesouro Direto, these securities are backed by the Brazilian Treasury and currently benefit from the country’s benchmark interest rate (Selic) of 15% in August 2025 — one of the highest in the world.

While US Treasury Bonds yield below 5%, some Brazilian bonds can pay over 10–15% annually. In this article, you will learn exactly how to invest in Brazil from the USA, why Americans are interested in Brazil high yield bonds, and the best ways to access them.

What is Tesouro Direto?

Tesouro Direto is the official program created by the Brazilian government in 2002 to allow individuals to buy Brazilian Government Bonds online. It is very similar to the US Treasury market, but with much higher interest rates.

Types of Brazilian bonds available through Tesouro Direto:

  • Fixed-rate bonds (Tesouro Prefixado) → locked yield, good when Selic is expected to fall.

  • Inflation-linked bonds (Tesouro IPCA+) → protect against Brazilian inflation.

  • Floating-rate bonds (Tesouro Selic) → follow the Selic rate, currently 15% in August 2025.

Why US Investors Are Interested in Brazil

  1. High yields – With Selic at 15%, Brazil offers some of the best fixed-income returns in the world.

  2. Diversification – Investing in Brazil allows US investors to access emerging markets outside the US.

  3. Currency opportunity – If the Brazilian Real gains against the US Dollar, returns in dollars can be even higher.

  4. Liquidity – Bonds can be sold back daily on the secondary market.

Risks for US Investors

  • Currency risk – A depreciation of the Brazilian Real reduces dollar returns.

  • Political risk – Brazil’s fiscal and political volatility can affect bond prices.

  • Inflation – Although indexed bonds protect against inflation, it can still erode short-term gains.

How Can a US Investor Buy Brazilian Bonds?

Foreign investors cannot open a direct Tesouro Direto account like Brazilian residents, but there are 3 practical ways to invest in Brazilian Government Bonds from the USA:

  1. Brazilian ETFs traded abroad – For example, iShares MSCI Brazil ETF (EWZ) provides exposure to the Brazilian market.

  2. Mutual funds and ETFs holding Brazilian bonds available via US brokers.

  3. International accounts in Brazil – Brokers like XP Investimentos and BTG Pactual International allow foreigners to buy Brazilian fixed income securities directly.


Example: Investing Through an International Broker

  1. Open an account with a global broker that offers access to Brazil high yield bonds (e.g., Interactive Brokers).

  2. Fund your account with USD.

  3. Choose the Brazilian bonds or ETFs available on the platform.

  4. Monitor yield and the USD/BRL exchange rate for currency fluctuations.

Conclusion

With Selic at 15% in August 2025, Brazilian Government Bonds (Tesouro Direto) stand out as one of the highest-yielding investments in the world. For US investors searching for diversification and better returns, Brazil offers a unique opportunity compared to low-yield US Treasury bonds.

While risks exist — especially currency and political risk — the potential for double-digit yields makes investing in Brazil from the USA a strategy worth considering.


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