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  • 2016-06-25 05:07


    By Jack Duffy

    PARIS (MNI) - European Central Bank Governing Council member Francois Villeroy de Galhau said Saturday that the consequences of Brexit would be much heavier for Britain than for the Eurozone, but exit talks must still be carried out quickly to reduce the uncertainty.

    "Of course there will be negative consequences for the European economy," Villeroy de Galhau told France Inter radio.

  • 2016-06-24 16:41


    * Fixed income traders are really in need of a little calm to digest the impact of the UK's stunning vote to leave the EU Friday, and as such, Treasuries may start to nestle into a new range. That range should be bookended by 1.38%, the July 2012 all-time yield low and the key 1.70% threshold established in the hours surrounding the UK vote, market participants said. There are no Treasury coupon auctions scheduled in the week ahead. Moreover, the Fed speaker calendar is light, with a focus on appearances overseas. Chair Janet Yellen attends a conference at the ECB. Meanwhile, reaction to the Brexit "Leave" vote should continue as market participants reevaluate the effects, but this still should provide support for U.S.

  • 2016-06-24 16:39


    --Traders Expect Large Portfolios to Do Asset Allocation Next Wk

    NEW YORK (MNI) - Prices of U.S. Treasuries ended Friday higher, though well off the highs of the overnight massive risk-off rally, after the UK shocked the financial markets and voted to leave the European Union.

    Treasuries saw two-way flows and also some profit-taking and fading of the rally.

    Treasuries prices opened Tokyo mildly lower with 10-year note yields at 1.6835% but yields then fell to a low of 1.4750% as the "Leave" vote became clear. The Treasuries move overnight was described as a circus, and dominated by MBS convexity buying flows as the 10-year printed 1.50%, and later hit 1.421% at 1:48 a.m. ET.

    Then once such flows finished, better sellers emerged, said traders.

  • 2016-06-24 16:38


    --Traders Expect Large Portfolios to Do Asset Allocation Next Wk

    NEW YORK (MNI) - Prices of U.S. Treasuries ended Friday higher, though well off the highs of the overnight massive risk-off rally, after the UK shocked the financial markets and voted to leave the European Union.

    Treasuries saw two-way flows and also some profit-taking and fading of the rally.

    Treasuries prices opened Tokyo mildly lower with 10-year note yields at 1.6835% but yields then fell to a low of 1.4750% as the "Leave" vote became clear. The Treasuries move overnight was described as a circus, and dominated by MBS convexity buying flows as the 10-year printed 1.50%, and later hit 1.421% at 1:48 a.m. ET.

    Then once such flows finished, better sellers emerged, said traders.

  • 2016-06-24 15:28


    By Denny Gulino

    WASHINGTON (MNI) - The repercussions of the UK exit vote in the economic, financial, foreign exchange and direct investment spheres are unfolding on quote screens around the world Friday yet deeper are some tectonic plates set in motion that will change the landscape, particularly for the United States, from what it has been since World War II, one expert told MNI.

    "The United States' approach to Europe for 70 years has been to build a more united Europe, a more cohesive Europe, a Europe that doesn't go to war with itself but equally importantly, a Europe that is a partner for the United States in shaping the political, economic and security environment in the trans-Atlantic space and around the world," said Jeffrey Rathke, a senior fellow at the bipartisan thi

  • 2016-06-24 13:20


    --Hill's Appropriations Process Slows To A Crawl
    --House Speaker Ryan Declines To Opine On Stop-Gap
    --House Minority Whip Hoyer Says Brief Stop-Gap Is Best

    WASHINGTON (MNI) - While the 2017 fiscal year does not begin for more than three months, informal discussions have begun on Capitol Hill about the terms and duration of a stop-gap spending bill to keep the federal government funded for the start of the 2017 fiscal year.

    These talks have been spurred by Congress's glacial progress on the 12 FY 2017 spending bills and its abbreviated legislative calendar for the year caused by summer conventions and the November elections.

    So far, the House and Senate have each passed three of the 12 spending bills for FY 2017, but no final version of any bill has been appr

  • 2016-06-24 12:53


    --Adds Additional Quotes

    PARIS (MNI) - French Finance Minister Michel Sapin said Friday that the initial shock of the UK referendum vote had been controlled and that the Eurozone had tools to react if the situation worsened.

    "The shock was important but the consequences are under control," Sapin told reporters in Paris. The impact on the Eurozone so far, he said, has been "extremely limited."

    Sapin said the Eurozone was much more resilient now than during the worst of the debt crisis several years ago.

    "It is important that everyone bears in mind that the Eurozone its no longer the same as in 2010-11.

  • 2016-06-24 12:46


    OTTAWA (MNI) - Following is the text of a statement issued Friday by Canadian Finance Minister Bill Morneau following the result of the UK referendum:

    "Earlier today, I spoke with my G7 Finance Minister colleagues and Central Bank Governors as we continue to closely monitor developments in the world economy and global markets following results of the referendum, and we reaffirmed our confidence in the UK's economy and financial sector.

    "While some market and economic volatility can be expected, the Canadian economy is well placed and our financial institutions are well funded.

  • 2016-06-24 12:45


    By Jack Duffy

    PARIS (MNI) - The following statement was released Friday by the Bank of France:

    "The Bank of France takes note of the British decision to leave the European Union. We are closely following the impact of this decision on the functioning of financial markets and their stability. French banks and insurance companies are very solid with their recent results financial structures."

    "An active member of the Governing Council of the ECB, and the G7, the Bank of France is ready to respond, as reported today by these two institutions, at all potential liquidity requirements in euros and foreign currencies.

  • 2016-06-24 12:17


    By Jack Duffy

    PARIS (MNI) - French Finance Minister Michel Sapin said Friday that the impact on Eurozone so far from the Brexit vote has been limited and that the currency area has tools to react if the situation worsens.

    Speaking to reporters in Paris, Sapin said "the consequences on the Eurozone have bee extremely limited."

    Hen added that "it is important that everyone bears in mind that the Eurozone its no longer the same as in 2010-11. It now has tools at its disposal."

    He said the Eurogroup of finance ministers "was ready to take decisions" to limit the Brexit fallout if necessary.

    More

    --MNI Paris Bureau; tel: +33 1-42-71-55-41; email: jack.duffy@mni-news.com

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