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Mizuho Wary Of Potential For Further Spread Widening On Polling Trends

OAT

Mizuho write “opinion poll results are starting to increase the chances of a second- voting round where the two candidates may be Le Pen’s party and the NFP. Both options do not look great from a fiscal perspective, which is why we think that the widening of OAT-Bund spreads likely has more room to go. Having said that, the unwinding of flight-to-quality flows may extend a bit further in coming days.”

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Mizuho write “opinion poll results are starting to increase the chances of a second- voting round where the two candidates may be Le Pen’s party and the NFP. Both options do not look great from a fiscal perspective, which is why we think that the widening of OAT-Bund spreads likely has more room to go. Having said that, the unwinding of flight-to-quality flows may extend a bit further in coming days.”