The Yen Is High And Hard To Block. Global Bond Yields Are Low.

On Wednesday (July 6th), the pound fell to its lowest level in more than 30 years, and last month's British referendum prompted investors to seek refuge, pushing the yen up and making global bond yields low.

The pound fell through the low point once touched by the referendum in June 23rd.

The yen climbed at least 1% of all 16 major currencies.

Three commercial real estate funds in the UK suspended trading in 24 hours, the first sign of market failure since the referendum resolution lifted assets in Europe, and the three funds were about 10 billion pounds, which disturbed the market.

The British insurer Aviva group has suspended 1 billion 800 million pounds of UK Property Trust (Property Trust), and British standard life's standard life investment Standard (Life Investments) said it had suspended all pactions in the UK's real estate market.

Subsequently, Prudential Group Fund Management Department M&G also temporarily closed its fund.

Italy banking stocks tumbled on Tuesday, making investors even more aware of market turmoil.

10 years in the United States

Yields fell to a record low, Japan's long-term treasury bonds.

It has also fallen to an unprecedented level.

Masashi Murata, vice president of Brown Brothers Harriman & Co. in Tokyo, said: "the downward trend in the yield of sterling and bond yields is at a loss. Investors believe that the reason for buying the US dollar is not enough, so the yen is pushed up." Brown, Brothers

The geometric loss of the UK economy remains to be seen, but it will certainly be unfavourable to the pound, and further decline is inevitable.

Beijing time 14:48 Wednesday, the pound / dollar fell about 0.9%, to 1.2915, after hitting 31 year low 1.2798.

The US dollar / yen also fell by about 0.9% to 100.90, after falling to its lowest level since June 24th, 100.58.

The yen rose 0.8% on Tuesday.

Risk aversion hit Asian stock market, Japan's Tokyo index fell 3%.

Japanese Prime Minister Abe Shinzo (Shinzo Abe) said in June 28th that the government would pay close attention to the trend of the foreign exchange market. He asked the governor of the Bank of Japan (BOJ), Kuroda Higashihiko (Haruhiko Kuroda), to work together with G7 to solve the problem of market liquidity.

Ueda Harlow Ltd.

Toshiya Yamauchi said: "Japan.

The expectation of continued fall is driving the yen up, and the risk of further yen rises is likely to test the 100 yen level to reflect the reaction of the Japanese authorities.

Bart Wakabayashi, head of foreign exchange sales at Hongkong's State Street Global Markets, said: "will the dollar / yen regenerate two digits?" I think this is a very dangerous level. If we fall below 100, we should start to hear some complaints from officials.

Wakabayashi said: "I am sure there are many hedge funds flowing into the yen, obviously against the pound, rather than the euro / yen, and so on, so this is not just the yen's valuation with certain currencies.

For traders, the market is complicated now, and I'm sure the same is true for central bankers and policymakers.