Published: 2026-10-05T14:18:11.000Z
EUR/CHF flows - Watching the French-German Bond Spread
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CHF is consolidating last week's gains versus the EUR, with the next move dependent on French-German government bond spreads.
Hopes are growing in Paris that the National Rally will support the 2027 budget bill, where the debates start on October 13. With Le Pen ahead in the 2nd round presidential polls, she likely does not want to inherit a fiscal emergency. Even so, the French-Bund spread would likely have to lead EUR/CHF. The CHF has benefitted from safe haven flows with the sharp rise in 10yr French spreads. Narrower French spreads could prompt a correction to 0.9350 on EUR/CHF.
