Daily Flows

• After a busy start to the week, last Friday was quieter, with most flow directed to 6-month term deposits and NCDs.
• Outright levels of 5.35% for 6 months were common across both products, as this part of the curve is most elevated.
• After significant flow to semi-government FRNs, market participants may expect less volume available this week.

Macron’s Snap Election Brings a Shock Result

• Over the weekend, France had its second round of elections where it appears that the hard-left parties have won a significant number of votes, pushing Le Pen’s National Rally party into third place.
• After much talk of Europe turning right, both the UK and France have seen the right lose elections.
• Iran has elected Masoud Pezeshkian as their president, a significantly moderate choice who has been an advocate of letting women choose to wear the hijab and ceasing internet restrictions.
• A more moderate leader may improve relations with the U.S. and may see oil prices decline, provided OPEC does not reduce supply.
• This moderation is always welcome as it brings inflationary relief on the supply side.