LONDON, April 10 (Reuters) - Goldman Sachs has recommended its clients take a short position on French government bond futures maturing in June ahead of two-round presidential elections that begin later this month.
"We recommend going tactically short June French futures at 147-72, for an initial target of 144.00, and stops on a close above 150.00," Goldman Sachs economists said in a note sent on Monday.
The position would allow investors to take a view on duration in a market that the bank considers expensive, they added.
The economists noted the effect the upcoming presidential elections could have on French government bonds.
They said at a victory by either of the centrists, Francois Fillon or Emmanuel Macron, would see the French government bond yield spread over Germany fall whereas a win for either anti-establishment party - headed by Marine Le Pen and Jean-Luc Melenchon respectively - would see the gap increasing. (Reporting by Abhinav Ramnarayan; editing by Sujata Rao)