Flight to Safety Likely Initial Brexit Reaction: Higgins

Treasuries halted a four-day decline, the longest stretch since April, with just one day left until the U.K. votes on whether to leave or remain in the European Union. The yield on the benchmark 10-year note retreated from a two-week high as different polls put either side ahead before Thursday’s referendum. U.S. sovereign debt fell Wednesday after Federal Reserve Chair Janet Yellen said the central bank is watching for whether, rather than when, the U.S. economy would show clear signs of improvement. The spread between the U.K.’s benchmark government bond yield and similarly dated bonds from Italy and Spain has narrowed after touching multi-month highs last week amid Brexit uncertainty. U.K. 10-year government bond yields have declined this quarter, while Italy and Spain yields have increased. Coutts & Company Chief Investment Officer Alan Higgins discusses with Bloomberg's Anna Edwards in London and Manus Cranny in Dubai on "Countdown."

U.K.'s May Calls for Two-Year Brexit Transition Period
31:59 - U.K. Prime Minister Theresa May speaks in Florence, Italy on the need for a period of implementation after the nation leaves the European Union. (Source: Bloomberg)
  • U.K.'s May Sees 'Concrete Progress' in Brexit Talks
  • New Europe Must Inform U.K.'s Brexit, Says Studzinski
  • Full Show: Bloomberg Daybreak: Americas (09/21)