In any case, volatility in European FI is likely to be driven primarily by political developments for the time being, as we approach French legislative elections towards the end of the month.
The French-German 10y spread hit its widest since 2020 yesterday, an obvious sign of market jitters increasing about the potential for a victory for Le Pen's RN party, and a likely headwind for the EUR, given the typical inverse correlation between spot EUR/USD and eurozone spreads.
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