Treasury yields hold steady as Trump's trade war intensifies

U.S. Treasury yields held steady on Thursday as President Donald Trump's trade war intensified, with Brazil being hit with fresh levies and new tariffs on copper imports being announced.

At 4:50 a.m. ET, the 10-year Treasury yield was little changed at 4.347%, and the 30-year yield was just under one basis point higher at 4.881%. The 2-year yield was down less than a basis point at 3.86%.

One basis point is equal to 0.01%. Yields and prices have an inverse relationship.

Trump slapped 50% tariffs on Brazil in an announcement late Wednesday, which is set to go into effect from Aug. 1. It's partly in retaliation against the ongoing prosecution of the country's former president, Jair Bolsonaro.

The levies are a jump from the 10% reciprocal tariffs imposed on Brazil in early April, with Trump saying it's also a response to the “very unfair trade relationship” between the two companies.

Brazilian President Luiz Inacio Lula da Silva said Wednesday that the country will respond with reciprocity to the new tariffs rates, citing a Brazilian law which allows the government to take appropriate countermeasures.

Additionally, Trump said 50% tariffs on copper will start from Aug. 1, a decision made after the president received a national security assessment.

On the data front, investors will await weekly initial jobless claims for the week ending July 5, which will be released on Thursday morning.