Le Pen Risk Flashes in Tightest Yield Spread to Spain Since 2010
- France’s bond market starting to show greater election risks
- Allianz GI says watch for impact of Le Pen’s populist message
Is France an Interesting Trade?
This article is for subscribers only.
The ‘Frexit’ barometer is flickering into life.
With National Front leader Marine Le Pen ahead in a poll on the first round of France’s presidential election, the country’s government bonds are starting to lose their cachet as some of the safest in the euro area. The yield on 10-year French securities is the highest relative to Spanish debt since April 2010 and the spread between French and German yields is near the widest level in more than two years.