Bonds

French Bonds Gain as Candidates Retire to Curb Far-Right Power

  • Parties had until 6 p.m. France time to withdraw candidates
  • France-Germany yield gap falls to lowest since mid-June
Marine Le Pen on June 30.Photographer: Cyril Marcilhacy/Bloomberg
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French bonds gained amid reports that political parties were maneuvering to block an absolute majority for the far-right after Sunday’s second-round vote.

The nation’s 10-year yield premium over safer German peers fell to 71 basis points on Tuesday, the tightest on a closing basis since June 13. That’s the third consecutive day the spread narrowed, the longest streak in almost two months.