The market for corporate and financial debt took a hit on Friday and may be on the ropes in the wake of the Brexit referendum result.Over the weekend, Bloomberg reported that market participants believed the Euromarket may be closed for a week, hit hard by the result and with no new corporate bond sales occurring on Friday. Bloomberg, in an overview, reported it was expected that there would be no investment grade bond sales until mid-July and junk bond sales could take even longer to return, as investors and issuers consider the ramifications of Brexit.In Australia, the ten-year government bond rate rallied to two per cent on Friday as financial markets digested the UK vote.Yields on ten-year German bonds went negative, falling by 14 basis points to negative 0.05 per cent. The yield on ten-year US Treasury bonds fell by 17 bps to 1.57 per cent.Indicators on corporate bonds took a grim turn. The European Main CDS index widened by more than 26 per cent on the day or almost 20 bps, to close at 94.82 bps. Markit reported that the UK sovereign five-year CDS spread widened by more than two-thirds to 56 bps.Across the Atlantic, the CDX index moved 14 per cent wider to close at 86.9 bps. The Aussie iTraxx widened by only a little more than nine per cent, to close at 135.65 bps, not far from where it closed only a week earlier.However, the Big Four banks were hit harder, with spreads on five-year CDS for the banks moving out by more than 15 per cent to 90 bps on Friday.Bloomberg also reported that 37.5 per cent of respondents to a survey expected that there will not even be any sovereign bond issuance this week, an assessment that may have a northern hemisphere bias.The Australian Office of Financial Management plans to sell Commonwealth government bonds both today and on Friday.Financial markets had mostly rallied on Thursday, in expectation that the UK referendum would result in a vote to remain in the European Union. On Friday morning, the SPI futures index showed that the Australian share market was set to open up by 60 points, after the Dow Jones index ended Thursday above 18,000 points for the first time in more than two weeks.The longest lasting impact of the Brexit decision will be felt in the UK economy.Fitch Ratings said on Friday that the decision would be broadly credit negative across most sectors of the UK economy. Fitch also said that the UK sovereign rating would be reviewed shortly but did not put the AA+ rating on Rating Watch.Moody's Investors Service echoed Fitch's comments about the negative impact of the decision on the UK economy but went one step further and revised the outlook on the Aa1 rating assigned to the UK, to negative from stable.