Markets
The European risk-off from last week shifted into a lower gear. Markets pondered comments from Marine Le Pen of the far right Rassemblement National as she indicated she would respect France’s institutions and was prepared to cooperate with President Macron after the elections. Bunds returned part of their safe haven gains with yields rebounding 5-6 bps across the curve. Bund yields also rose more than swaps. The French 10-y yield spread vs Bunds still widened slightly further (+2 bps to 0.79%). Spreads of other South-European bonds (Italy, Spain, Portugal, Greece) that faced…
