We’re keeping it all French, all the time over here when it comes to chart posts.
As you’re well aware (and if you aren’t, do yourself a favor and get up to speed), Friday brought some bad news when it comes to the chances that France will elect a populist lunatic who harbors a deep-seated desire to take the country out of the EMU and trigger a massive €1.7 trillion sovereign default (for the latest on the effect this would have on French corporate debt, see here). In short, the prospect of a Leftist alliance came up again yesterday, and if such an alliance were to materialize, it could well boost Le Pen’s chances in the May 7 runoff.
Well, I mentioned that the news triggered another bout of widening in OAT-bund spreads. Below, find an up to date chart that plots this spread against Le Pen’s chances of becoming the French president.
Up, up and away.