This morning's trade has been.......>

US TSYS SUMMARY: This morning's trade has been dominated by the Brexit

breakthrough that has pushed the Gilt yield curve 5-6bp higher and spilled over

into other markets.

- The dollar has been firm against almost every currency, bar sterling and this

has probably aided some of the UST curve steepening. The 2 week stop-gap funding

reprieve also aided dollar strength and weakness in Treasuries. - With the yield

curve at near decade low levels of flatness, perhaps some of the popular curve

flattener trades are being unwound ahead of the employment report later today. 

- It's worth pointing out that the yen has weakened significantly to 113.55 over

the past couple of days and has largely run ahead of the rise in 10Y UST yields

i.e. the usually tight correlation has lessened.

- Next week's FOMC rate hike is 97% priced according to MNI PINCH. The payroll

report is unlikely to alter that pricing at all. 

- The swap spread curve has flattened this morning, with 2Y spreads 0.25bp wider

and the 10Y spread 0.25bp narrower.