French Election Scandal Pushes Yields to 3 Year High

February 1, 2017 Share Print 0

A ‘radical-left winger’ and the fading hopes of the center-right are making investors nervous ahead of upcoming French elections sending 10-year French-German spreads to a three-year high.

The spread peaked out at 72 basis points at around 9 a.m. London time on Wednesday, a level not seen since January 2014.

“The more recent widening of this spread is clearly linked to anxieties over the French Presidential elections in April and the appointment of radical-left winger Benoit Hamon two days ago, together with the possible emerging scandal associated with Francois Fillon’s wife as paid-secretary, that together makes the establishment parties chances weaker and the presidential race much more open and uncertain that before,” Jan Randolph, director of sovereign risk at IHS Markit, told CNBC via email.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.