Investing.com - French government bonds rose on Monday, pushing the country’s borrowing costs down to the lowest in six months after Emmanuel Macron’s presidential election victory over Marine Le Pen on Sunday.
Centrist former economy minister Macron topped 66% against just under 34% for far-right Le Pen in the second round of voting on Sunday, delivering a result that most investors were hoping for.
The victory for pro-EU centrist Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in Brexit and propelled Donald Trump to the White House.
France's 10 year bond yield dropped at the open and the spread over German 10 year government bond yields fell to 32.7 basis points in early trade, its lowest since November 10.
Yields rise when bond prices fall as investors demand a higher rate of return for holding the debt.
Meanwhile, France’s stock market hit fresh nine-and-a-half year highs on Monday.
The CAC 40 edged up 0.2% after the open to its highest level since the financial crisis, but gains remained muted having already been priced in after Macron’s strong showing in the first round of voting two weeks ago.