Financial turmoil intensified on July 5 in the wake of the U.K.’s Brexit vote. The pound fell to a record low and yields on top tier sovereign bonds plunged further as investors continue to worry about the British financial system.
The British pound touched $1.30, a 31-year low. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hit a record of 1.368 percent. The yield has dropped 37 basis points since the U.K. voted to leave the European Union.
Three U.K. asset managers announced they would freeze trading some of their property funds to prevent investors from withdrawing money after the Brexit vote sparked a series of redemptions. Investors then proceeded to sell off other risk assets as well.
The British pound touches a record low after property funds suspend trading. Bloomberg
