The CAC 40 index is down 1.3% on the day now with French government bonds also slipping further on the day. 10-year French bond yields are up 9 bps to 1.10% currently as it appears that investors are waking up to looming election risks.
One of the latest opinion polls shows that far-right candidate, Marine Le Pen, captured 48.5% of voter intentions of a likely runoff against Emmanuel Macron - the highest she has ever notched.
Now, a far-right victory is still not the most probable scenario but election risks are always something to consider - even more so these days when political swings can happen at any point in time. But the thing here is that among most polls, we are seeing Macron's lead be cut to just around 3-8 points for the most part (it was almost 15 points in early March).
It's not exactly a major blow for Macron yet but we're certainly in the territory where there might be 'margin for error' when it comes to projecting who will come out on top. So, that's certainly a risk for markets to contend with.
