Brazil's B3 launches three inflation‑linked bond indices

The Brazilian stock exchange B3 announced the creation of three new fixed‑income indices that track federal inflation‑indexed bonds (NTN‑Bs). The indices are:

- IB3 TPCA‑PM2, a two‑year real‑interest benchmark; - IB3 TPCA‑P5, a five‑year benchmark; - IB3 TPCA‑P10, a ten‑year benchmark.

Each index is a total‑return measure composed exclusively of NTN‑Bs, with theoretical portfolios of five bonds that are rebalanced quarterly to maintain the defined maturity profile. B3 says the benchmarks can be used by investors, asset managers, fund administrators and issuers to monitor specific segments of Brazil’s real‑interest rate curve and to support ETFs and other diversified strategies.

According to B3 product manager Hênio Scheidt, the new indices “reinforce B3’s capacity to reflect different profiles of term and risk within the universe of public bonds,” providing reference points for market participants seeking to follow the behavior of distinct portions of the curve.