Friday, 14 June, 2024
BACK TO LE FUTURE:
BACK TO LE FUTURE: it seems like an eternity ago since the days of checking in on Eurozone 10yr spreads as a key risk sentiment driver, but here we are again. Macron’s political gamble is having significant ramifications and bond vigilantes are telling him what they think. With NF’s polling lead focussing Le-Pennomics, OATs spreads are highest since 2017 vs Bunds and the CAC40 is experiencing a significant volatility bought.
However, this may well play into the President’s hands. He has instant gratification to point to “this is what an NF govt would bring, and we saw what happened in Truss-enomics just 18-months ago. This is what you’re voting for” will be the likely platform.
The left parties in France have also formed a pact which is easing tensions and seeing some minor relief in bonds this am.
If that message lands, FRENCH BANKS will be the first to appreciate relief. French election polls key drivers of risk appetite for the immediate future
