French Bonds Rally After Macron Boosts Presidential Campaign
UBS's Fiotakis Says Investors Look to Hedge French Risk
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French government bonds led gains in Europe after independent candidate Emmanuel Macron agreed to an alliance with his centrist rival Francois Bayrou, boosting his bid to become president.
Yields on the nation’s 10-year notes fell to the lowest in two weeks after Macron said late Wednesday that he had agreed to Bayrou’s offer of a deal to avoid splitting the moderate vote. The gains accelerated after an OpinonWay poll released on Thursday showed Macron would beat anti-euro candidate Marine Le Pen by a margin of 20 percentage points in the second round of the elections. German bonds, seen as a haven, lagged gains after retreating from a seven-week high on Wednesday.