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US Treasurys continue rise after Brexit vote

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Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. sovereign bond prices were higher Monday continuing a strong safe-haven bid after the results of the U.K. referendum on its European Union membership.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, moved lower to 1.4623 percent, while the yield on the 30-year Treasury bond was down at 2.2835 percent, after hitting its lowest level since February 2015. Two-year yields also fell, last trading at 0.5936 percent.

Markets, which had priced in a win for the remain camp, continued to be roiled from the fallout of the U.K.'s vote. The ruling Conservative Party is set for a leadership battle after Prime Minister David Cameron stepped down on Friday and the opposition Labour Party, led by Jeremy Corbyn, has suffered an exodus of high-profile members of the shadow cabinet.


On Monday, Corbyn reshuffled his shadow cabinet in an effort to hold on to power in the party and Finance Minister George Osborne made a speech to steady the markets ahead of the open.

"Markets seem a little calmer this morning, which we can at least partially attribute to George Osborne's statement," Joe Rundle, head of trading at ETX Capital, said in a morning note.

"After going to ground since the vote, the chancellor's appearance indicates some much-needed continuity at the heart of government. Despite the prime minister's resignation and a swathe of Labour shadow cabinet departures, Osborne doesn't appear to be going anywhere."

Also on Monday, British 10-year government bond yields sank below 1 percent for the first time.

Back in the U.S., trade deficit for May came in at $60.59 billion.