The Eurozone peripheral government bonds yield rose on Tuesday amid fresh concerns over Brexit and a wider slowdown in the global economy, which has pushed the yield gap over top-rated German bonds to its widest levels since February.
According to Reuters, the yield gap, or spread, between 10-year Portuguese bond yields and German peers was at 337 basis points, its widest since February when concerns about the global economy rocked financial markets. The Spanish/German yield gap widened as far as 158 basis points, while the Italian/German yield spread moved to 146 basis points. Ireland's 10-year bond yield spread over Germany was also at its widest in almost four months, at around 82 basis points.
Following the global debt market, the benchmark 10-year US Treasury note yield seen marching lower towards 1.50 percent mark. The German 10-year bund yields fell below zero for the first time to -0.029 percent. The 15-year JGB yield dip below zero for the first time, it is down at -0.001 percent and the benchmark 10-year JGB yield hit a fresh all-time low of -0.162 percent. The UK 10Y gilt yield hits new low of 1.15 pct, likely to test 1.10 pct mark as Brexit vote loom.
The latest polls by various corporate bodies in the United Kingdom in run up to the June 23 Brexit referendum indicate that the percentage of citizens in favor of “leaving” the European Union (EU) has outnumbered those who want to “remain”, raising the possibility that Britain might leave the EU after 43 years of membership in the bloc.
According to a recent poll on Brexit by YouGov, showed 46 percent of participant are in favour of ‘Leave’ while 39 percent wanted to ‘Remain’, rest being indecisive. Further, a new UK poll on the EU by ICM for the Guardian shows a 6 percent lead for the Leave side (53-47 percent), when undecided of 6-7 percent were excluded. Reportedly the results were the same for polls conducted online and by phone. This contrasts with prior rumours of a similarly-sized pro-Remain balance.
According to the latest Betfair odds, the implied probability of the UK voting to remain in the EU has now fallen to 55 percent, down from 59 percent earlier and around 64 percent yesterday. Last Thursday the implied probability to remain peaked at 78 percent.
The material has been provided by InstaForex Company – www.instaforex.com