Here’s What the Brexit Could Mean for the Bond Market

Fixed income investors are gearing up for more carnage should UK citizens vote to leave the European Union on Thursday. Yields on the 10-Year Treasury stand at 1.69 percent, compared to 1.85 percent on month ago. Germany's 10-Year Bund yield stands at 0.061 percent, down from 0.16 a month ago. Yields on Japan's 10-Year Treasury are currently in negative territory at minus 0.138 percent, compared to minus 0.098 a month ago. A bond's yield and price moves in opposite directions. 'One thing that investors are pretty sure of is if the vote is to leave, then central banks have to step in once again,' said Anastasia Amoroso, global market strategist at JPMorgan Asset Management. 'That likely means that Bank of England has to ease monetary policy and it probably means that the European Central Bank follows suit and that means that the Fed has no choice but to further delay their rate increases - that's what's being priced into the bond market right now.' TheStreet's Scott Gamm reports from Wall Street.