LONDON May 8 The premium investors demand to
hold 10-year French government debt over German equivalents
tightened to its lowest since early November after centrist
Emmanuel Macron won the French presidency on Sunday.
European leaders hailed the victory of Macron as a vote for
European unity and a blow to political forces that had sought to
build on last year's Brexit vote to tear apart the European
France's 10-year borrowing costs dropped at
the open on Monday, and the spread over German 10-year
government bond yields fell to 32.7 basis points
in early trade, its lowest since November 10.
The Italy-Germany government 10-year bond yield spread also
tightened to two-month low of 172.8 basis points, though the
yield on that Italian bond rose soon after.
French government bond futures open 4 ticks higher at 149.80
and was 12 ticks higher by 0620 GMT.
(Reporting by Abhinav Ramnarayan, editing by Nigel Stephenson)