OAT: Underperforming Peers Again Despite Lecornu Call To Meet With Socialists

* The 10-year OAT/Bund spread has risen another 3bps to 107bps, now up 13bps since the September 10 close. * OATs are underperforming EGB peers intraday, and relative weakness has been marked through the summer. The 10-year BTP/OAT spread is now at a fresh low of -15bps * Markets are awaiting details of PM Lecornu's 2027 budget proposal - expected around the end of the month. In the meantime, OAT's are proving highly sensitive to shifts in risk sentiment, energy prices and broader global yield moves. * Domestic media write today that PM Lecornu has proposed a meeting with the Socialists to compromise on the 2027 budget. Le Parisien write that "PS officials involved in the race for the Elyse are tempted by a censure on the budget", something Lecornu strongly wants to avoid. If a budget is not passed for next year, the deficit could expand to above 6% (versus a targeted 5.0%).