Changes in the French presidential race injected a little fear into markets there Friday.
France's left-wing politicians are gearing up for what promises to be a tough campaign against right-wing candidate Marine Le Pen.
Socialist Benoit Hamon and hard-left candidate Jean-Luc Melenchon held talks Friday about possibly joining forces to beat Le Pen and her Front National party. Opinion polls put support for the two men at levels which, if combined, could be enough to reach a May 7 runoff election between the two top-scoring candidates.
French bond yields ticked higher on the news. Yields move in the opposite direction of prices, and many holders of French debt fear Le Pen, who has said she will pull the country out of the European Union. But they apparently sold the bonds on fear that a unified left-wing front could — perhaps ironically — push the centrist vote toward Le Pen.