Bonds

French Chaos Poses Little Risk to Europe’s Bond Rally

  • Investors see rise in periphery yields as buying opportunity
  • Yields outside of France quickly rebounded after selloff
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It will take a lot more than political chaos in the European Union’s second-biggest economy to upend the rally in the continent’s bonds.

While French President Emmanuel Macron’s decision to call a snap election caused yields to spike across the continent, sovereign bonds in the southern countries traditionally considered the most risky quickly rebounded.