RISK ON AFTER ROUND ONE IN FRANCE

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*EURO GAINS AS MUCH AS 1.9% TO $1.0931; HIGHEST SINCE NOVEMBER

*TREASURY FUTURES DROP 27/32, MOST SINCE MARCH 1, ON FRANCE VOTE, REFLATION TRADE REVIVAL

*Euro 1-Month Volatility Drops Most on Record After French Vote

*U.S. Treasury Yields spike up near 2.31%, that’s 10bps higher since Friday afternoon

Marine Le Pen and centrist Emmanuel Macron will make the second round of the French elections, a positive for euro and French government bonds. So far, populism’s rage has taken a rest in France, but it is much too uncertain to lay claim to final round winner.

Currency Volatility Plunge, Post the Election Results

EUR/USD’s one month implied volatility plunged nearly 3.7 vol points to 9.4 vol, the steepest slide on a closing basis, going back to 1998.

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