Bond buyers voice Brexit fears; Sterling falls

Lowest sales of bonds since 2003

Foreign bond buyers are concerned what impact a potential Brexit will have on the European fixed income system, following the announcement Britons will vote in an EU referendum on 23 June.

Prime Minister David Cameron confirmed the June date for the vote late on Friday after two-day summit in Brussels to try to carve out a better package for the UK if it remained a part of the EU. Britons will now need to decide whether to remain or exit in the historic poll. However, Brexit has already caused uncertainty in financial markets and banks have found their debt access restricted - European banks have sold less than $45bn of bonds this year, the lowest since 2003. There are also concerns the uncertainty will wreak further havoc on the prices new bond issues are sold. ...