Treasury yields are imploding

Treasurys spiked and their yields plunged on Thursday as part of the stunning global-market reaction to the initial EU referendum results.

The yield on the benchmark 10-year Treasury note fell as many as 19 basis points to as low as 1.55%, a level not seen since mid-2012. The drop was the most since October 2011.

Britons’ votes to remain or leave the EU are within neck and neck of each other.

And so as several analysts warned ahead of the vote, we’re seeing an unprecedented risk-off trade as traders realise that a vote to leave the EU is very much possible.

Meanwhile, S&P 500 futures were down more than 2.6% while Dow futures were off 2.2%. The pound suffered its worst drop ever, falling 9% against the pound.

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