LONDON, May 8 (Reuters) - 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 Union.
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)