The U.S. Treasury complex remains lower this afternoon as global risk assets have surged today and Brexit fears have waned. Pessimism in markets probably reached a level last week that should provide a basis for higher prices in risky assets. Failure to do so, particularly in the event of a "remain" vote" would be highly suspicious from our perspective akin to the summer of 2015 in Greece, when Greek voters had a choice to vote on austerity but the "market-friendly" result turned out not to be so. WTI crude is up 2.74% to $49.89/bbl. and the U.S. Dollar Index is down 0.54% to 93.70. Gold is down 0.44% to $1,289.1/troy oz.
The 2-year/10-year yield spread has widened back out to +94 bps from an 8-year closing low of +87 bps on Thursday. A steepening yield curve indicates greater faith in the prospect of stronger economic growth, but levels below +100 bps have historically