LONDON, April 10 Goldman Sachs has recommended
its clients take a short position on French government bond
futures maturing in June ahead of two-round presidential
elections that begin later this month.
"We recommend going tactically short June French futures at
147-72, for an initial target of 144.00, and stops on a close
above 150.00," Goldman Sachs economists said in a note sent on
The position would allow investors to take a view on
duration in a market that the bank considers expensive, they
The economists noted the effect the upcoming presidential
elections could have on French government bonds.
They said at a victory by either of the centrists, Francois
Fillon or Emmanuel Macron, would see the French government bond
yield spread over Germany fall whereas a win for either
anti-establishment party - headed by Marine Le Pen and Jean-Luc
Melenchon respectively - would see the gap increasing.
(Reporting by Abhinav Ramnarayan; editing by Sujata Rao)