Reported 12 months ago
French bonds saw gains as reports emerged of political parties working to prevent a far-right majority following Sunday's second-round vote. This included over 200 candidates from President Emmanuel Macron's centrist alliance and the left-wing New Popular Front stepping aside to hinder Marine Le Pen's National Rally. The nation's 10-year yield premium over German peers narrowed for the third consecutive day, indicating reduced concerns of extremist fiscal policies. While the spread remains elevated, the possibility of a far-right majority persists. Volatility in French assets is expected to continue as analysts monitor voting behavior amidst candidate withdrawals, with discussions around France's deficit likely tempering spread tightening.
Source: YAHOO