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US Treasuries plunge as Ipsos Mori Brexit poll puts 'Remain' 4 points ahead

The US Treasuries saw selling across the curve on Thursday as the recent poll by Ipsos Mori showed Brexit fears among investors started to fade, boosting risk sentiments. The yield on the benchmark 10-year Treasury note rose more than4 basis points to 1.728 percent and the yield on short-term 2-year note jumped 1-1/2 basis points to 0.767 percent by 11:25 GMT.

The final UK poll by Ipsos Mori for the Evening Standard shows 52 percent favouring Remain and 48 percent Leave. This will encourage optimism that Brexit will be averted, when today's votes are counted.

Referendum voting has officially begun in the United Kingdom at 6:00 GMT. Voting will continue for next 15 hours and will end at 21:00 GMT with the result likely known around this time tomorrow (between 06:00 to 07:00 GMT). The market is not likely to move much throughout this period, however, there could occasional volatility spark due to low volume and position shifting.

The recent polls showed the outcome of the referendum is too close to call, raising the uncertainty about the Thursday outcome. Latest online poll by YouGov showed 51 percent has voted in favour of 'Bremain', while remaining 49 percent voted for a 'Brexit'. Also, poll by the YouGov, 35 percent say its 'risky' to stay in the European Union, while 53 percent say it is 'safe' to stay in the EU.

Another UK phone poll by ComRes indicated 48 percent Britons voted to 'Remain' in the European Union, while 42 percent voted for 'Leave'; rest remained undecided.

Interestingly, according to Betfair the probability of the Remain camp winning in today's UK referendum has increased by 78 percent, according to response from the latest campaign polls.

On Wednesday, Fed Chair Yellen’s second round before Congress was largely a repeat of what was seen on Tuesday, continuing to reflect caution in the future timing and direction of interest rate moves.

Markets now look ahead to jobless claims, new home sales and leading indicators releases on Thursday. However, intense focus will clearly be paid to any news related to the UK’s EU referendum, given its potential global impact.

Meanwhile, the S&P 500 Futures up 18.75 points to 2,095.50 by 12:00 GMT.

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