European yields are heading higher along with the Euro and European stocks, with Bunds underperforming as Eurozone risk appetite surged with investors apparently already celebrating a Macron victory in France and welcoming the FOMC statement which left the door wide open to another rate hike in June. Investors shrugged off the economic weakness in Q1 as transitory. With the Fed meeting out of the way European markets are now looking ahead to the second round of the French presidential election on Sunday and with commentators seeing Macron as the winner of the last debate with Le Pen the risk of a late surge in support for the far right is being shrugged off. The DAX rose above the 12600 mark for the first time ever and Eurozone spreads have come markedly as final PMI readings add to signs that the economic recovery continues and broadens in Q1. Gilts outperformed, but also headed south as the FTSE 100 strengthened following stronger than expected services PMI.