Traders all over the globe are running to safe havens as they seek to protect their capital from the results of the turmoil the British EU referendum has unleashed.
Gold, the Japanese yen, and bonds are rallying hard as a result.
Locally the entire interest rate and bond curve has caught a bid tone with the bellwether 10-year bond rallying hard from yesterday’s close at 2.26% to a low of 2.019% a little earlier. It’s currently sitting at 2.034% at a growing chance of taking out the recent all-time low just below 2%.
Shorter maturity bonds are also very well bid and have rallied hard. The 2-year Australian government bond which closed at 1.745% yesterday is now trading at 1.556%. That’s just a point or so above the all-time low of 1.536% we saw in May after the RBA cut rates.