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2017.04.2102:39:00UTC+00Bond Prices Retreat as Investors Shift Focus to French Polls

Treasury prices retreated, pulling back for the second consecutive session after an extended rally drove the yield on the benchmark note to multi-month lows.

U.S. government bond yields surged after an influx of strong U.S. economic data and a poll indicated that support for the far-right candidate in the French presidential election Marine Le Pen has weakened.

The yield on the 10-year note ended at 2.240 percent, advancing 3.7 bps, up from the 2.202 percent on Wednesday, and its lowest level since November 10. Yield on the two-year note advanced 2.4 bps to 1.97 percent, while the yield on the 30-year bond, advancing by 2.8 bps to 2.891 percent.

Demand for safe-haven bonds weakened as increasing geopolitical tensions associated to the French presidential election allayed after a poll showed support for anti-EU and anti-euro currency candidate Le Pen has declined as centrist candidate Emmanuel Macron held on to his advantage. The poll comes a few days before the first round of election on Sunday.

In recent days, appetite for safe-haven bonds was stoked by worries that extremist candidates such as Jean-Luc Melenchon and Le Pen would be left to have a face-off in the second round of voting.



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