Brazilian inflation-linked government bonds, known as Tesouro IPCA+, opened higher on Thursday, with yields rising across the entire maturity curve.
The move follows the US government's confirmation of 25% tariffs on Brazilian products, a development that has immediately heightened trade risk for the Brazilian economy.
The 25% tariff rate represents a significant escalation in trade policy, directly impacting Brazil's export competitiveness.
The selloff in Brazilian debt is tracking broader global bond market weakness.
US Treasury yields have been climbing since Wednesday, driven by investors digesting a marked shift in tone from the Federal Open Market Committee’s recent policy statement.
The combination of rising US benchmark rates and new trade barriers is compressing the carry advantage for emerging market assets.
The 25% tariff rate represents a significant escalation in trade policy, directly impacting Brazil's export competitiveness.