LONDON, March 16 (Reuters) - France’s government bond yields hit a one-week low in early trade on Thursday after results of Wednesday’s Dutch parliamentary elections suggested that populist party PVV would come a distant second to the current ruling party.
Dutch centre-right Prime Minister Mark Rutte scored a resounding victory over anti-Islam and anti-EU Geert Wilders in an election on Wednesday.
French government bonds were seen as vulnerable to a potential victory for PVV, as France faces its own presidential elections in April and May, with far-right leader Marine Le Pen in with a chance to win the keys to Elysee Palace.
France’s 10-year government bond yield fell 5 basis points to one-week low of 0.99 pct. Most other euro zone bond yields were also lower on the day. (Reporting by Abhinav Ramnarayan, editing by Karin Strohecker)