Brazilian DI futures closed higher on Thursday, tracking the upward momentum in US Treasury yields and reflecting concerns over new US tariffs on Brazilian products.
The move in Brazil’s rates market underscores the growing sensitivity of emerging-market assets to shifts in US policy and trade dynamics.
The rise in DI rates comes as US Treasury yields have climbed sharply, with markets adjusting expectations for Federal Reserve policy.
For the first time in the current cycle, traders are pricing in the possibility of a rate hike, a significant shift that is rippling through global fixed-income markets.
This repricing is exerting upward pressure on borrowing costs across emerging economies, including Brazil.
Compounding the pressure is the introduction of new US tariffs on Brazilian goods, which adds a layer of trade-related risk to the outlook.