Bond Strategy Update: Brexit

Bond markets globally were off to a slow start at the beginning of the quarter, but began to drive higher as the Brexit vote approached and eventually jumped on the result as investors sought out safe-haven assets. The Barclays Universal Bond Index gained 2.53 percent in the second quarter; the gauge has advanced 5.68 percent so far this year through June. Interestingly, domestic and some international equity markets have largely recovered from their post-Brexit lows, but fixed income markets have remained at elevated levels as investors stay wary of the evolving economic landscape.