Investing.com - French government bonds came under renewed selling pressure on Tuesday, hit by mounting concerns over the outcome of the country’s upcoming presidential election.
Investors fear that far right politician Marine Le Pen could become the country’s next president when the French head to the polls in late April and early May.
An opinion poll on Monday showed that Le Pen is likely to get the highest score in the first round of voting in April, but then lose to a mainstream candidate in the decisive second round vote in May.
The yield on France's 10-year bond, which reflects the government’s benchmark borrowing costs, jumped 1.09 basis points to 2.89%. Yields move in the opposite direction to prices.
That drove the gap between French and German 10-year borrowing costs to the widest point since May 2012.