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OAT: Known Risks Counter Barnier's Optimism

OAT

No reaction in OAT spreads as PM Barnier suggests that a French government will be named next week (see recent colour from our political risk team for greater detaill).

  • Comments crossed ~30 minutes ago, with the country’s fiscal issues, related credit rating risk and lingering political uncertainty countering Barnier’s optimism from a medium-term perspective.
  • OAT/Bunds ~1bp narrower on the day just above 70bp, little changed since the early tightening.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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