Stephane Mahe | Reuters
Marine Le Pen, French National Front (FN) political party leader and candidate for French 2017 presidential election, at a political rally in Saint-Herblain near Nantes, France, February 26, 2017.
Marine Le Pen’s chances of becoming France‘s next president may be slipping and investors are breathing a sigh of relief.
A poll released Tuesday by French firm Ifop showed the far-right candidate’s lead over centrist Emmanuel Macron declining to just 1.5 percentage points. Another poll released by Opinionway showed Macron defeating Le Pen in the May 7 runoff election. France holds two rounds of voting in presidential contests.
French bond prices rose following the polls, bringing their yields closer in line with more steady German yields. The French 10-year note yield declined to 0.888 percent, narrowing its spread with the 10-year German sovereign yield to around 0.68 percentage points. Bond yields move inversely to bond prices.
French 10-year yield in 2016
French debt holders had been selling their bonds out of fear that a Le Pen victory would lead to France leaving the European Union — potentially threatening the future of the EU itself. The French-German spread rose last week to its highest since August 2012.