Britain’s vote to leave the European Union. This drove a rush for the safest assets (i.e. Bonds). Financial markets are on a wild roller coaster,” Mohamed El-Erian, the chief economic adviser at Allianz SE and a Bloomberg View columnist, said in a post on Twitter.
The pound plunged and the yen strengthened beyond 100 per dollar while Japanese and Australian bond yields tumbled to record lows. For the interim this means a sharp drop in interest rates, lowest since 2/2015. Might just be a small window of opportunity to take advantage before the markets stabilizes.