Markets are beginning to price in the possibility that the EU will look different on the 24th of June.









It had slowly started at the end of May but took a very distinct turn for the worse around the 7th of June, when Brexit polls started picking up, and even overtaking Bremain.

The pound sterling is on a clear declining path, against both the dollar as well as the euro.

But the euro area is also beginning to react. The Athens stock exchange took the hardest hit with a cumulative reduction of 9.0% since the 7th. But similarly, other countries saw losses upwards of 6%.

Government bond yields saw some movement (10-year yields) but not as significant (28 bp for Greece and 9.4bp for PT).

As we approach the final week before the referendum, we expect to see more volatility in the markets.