Hugh Hendry: Macron's victory will see bond yields rise

Macron's win is a victory for the status quo, says Hugh Hendry, which mans European sovereign bon yields will start to rise.

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hugh Hendry: the "world of normalisation" is here

With the recent election of Emmanuel Macron as French president, "Europe has voted for the status quo", says Hugh Hendry of Eclectica Asset Management. That means the euro is unlikely to break up, which in turn means "asset prices in Germany and other core countries have to move higher to compensate for the lower risk". There is already evidence of "a bubble... emerging in German equity prices". However, the Bundesbank (Germany's central bank) "will simply not tolerate" this. So there will be plenty of pressure on the European Central Bank (ECB) "to normalise interest rates".

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