⚖️⛔️Credit Spreads Widen On OAT Underperformance: Cable FX Macro

• Domestic political risks saw the periphery offered on Monday session, but declines were led by French OATs, a movement index calculated by Bloomberg showed

• French yields rose 12.8bps, while the 2s10s curve steepened 7.1bps. The most dramatic move was seen in credit default swaps as they rose 2.4bps, 7.5 times the average

• The premium in French bonds vs German Bunds widened to 55bps, the highest this year. The second chart below shows BTPs-Bund (yellow) and OATs-Bund (red) spreads