MEXICO: Peso More Concerned with Risk than Rallying Dollar

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• European bond futures have mostly moved off the shortest-leaning/least long structural positioning seen in August and early September over the past week or two, with longs set and shorts covered over the course of last week.
• However positioning is very mixed across contracts, and some (Schatz, Gilt) have been going against the grain.

Outgoing PM Lecornu writes on X.com that "I have accepted, at the request of the President of the Republic, to hold final discussions with the political forces for the stability of the country. I will tell the head of state on Wednesday evening whether this is possible or not, so that he can draw all the necessary conclusions." (As translated by X.com's Grok). 

• USDEUR and OAT futures little changed on the news, with the same main options still appearing to be available to President Macron: early elections, a new PM to attempt to form a stable government, or fresh elections.
• However this puts a slightly more concrete timeline (late Wednesday) on when we might hear about what options Macron will pursue.

Outgoing French Prime Minister Sébastien Lecornu has accepted President Emmanuel Macron's request for “last-ditch talks” with parliamentary leaders aimed at restoring stability. 

• Lecornu wrote on X, “I have accepted, at the request of the President of the Republic, to hold final discussions with the political forces for the stability of the country. I will tell the head of state on Wednesday evening whether this is possible or not, so that he can draw all the necessary conclusions.”
• Macron, who has yet to make a public statement on Lecornu’s resignation, “now has three main choices: He can name a new prime minister, who would then need to propose a fresh cabinet; he could call a parliamentary election; or he could resign himself — something he’s previously said he won’t do,” per Bloomberg.
• The Financial Times notes, “Macron could try to name another premier, his fourth since last summer, this time from the centre left. But the fracture that has now opened up with the mainstream conservatives makes this even less viable than before.”
• Social leader Jean-Luc Mélenchon wrote on X earlier, “Emmanuel Macron must resign or leave following a vote of the assemblies. The people are their own master. In one way or another, it will be summoned again. I invite everyone to check if they are properly registered on the electoral rolls. Register if it is not already done!”