French Bond Investors Skeptical Election Risk Is Over: Chart

Bond investors are far from convinced that the risks surrounding the French election are over despite the broader market exuberance following the outcome of the first round. Open interest, a measure of the number of contracts outstanding, has dropped 10 percent so far this week even as French government bond futures surged after the race for presidency narrowed to Emmanuel Macron and Marine Le Pen. A decline in open interest amid a rally in an asset typically suggests short-covering rather than new positions being added.

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— With assistance by Stephen Spratt

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