London — Global markets appeared largely calm on Friday, the last day of trading before the first round of France’s closely fought presidential election, with French bond yields hitting a three-month low and the euro treading water. A fatal attack on police officers in Paris overnight caused investors some immediate jitters, with the gap between French and German 10-year borrowing costs — a key indicator of election nerves in recent months — rising sharply in the first few minutes of trading. Traders said this was due to the concern the attack could sway the vote in favour of far-right anti-immigrant candidate Marine le Pen, whose anti-EU stance is of concern to many in the markets. But that move reversed as the session wore on, with the yield on 10-year French government debt hitting its weakest since mid-January and the gap between it and its German equivalent falling to its tightest in three weeks. Although falling yields usually indicate investors seeking safety, in the case of ...
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