What would a far-right or left-wing government in France mean for OAT spreads?

Higher spending plans would likely have an impact on French government bond spreads at a time when the country’s deficit is already under scrutiny.

In April, French president Emmanuel Macron made a landmark speech calling for a more deeply integrated Europe, alert to the growing challenges of an uncertain world. But its impact was muted by the fragile state of his government, which was further exposed six weeks later at the European Parliament election, where the far-right Rassemblement National (RN) party won 31.4% of the vote, leaving his centrist Renew alliance a distant second.