French stock futures rose sharply and government bond prices ticked higher on Monday after the far-right National Rally won the first round of parliamentary voting on Sunday, in line with expectations.

CAC 40 futures rose by more than 2% at the start of trade, while French 10-year government bond prices edged up, pushing yields down by around 1 basis point to 3.284%.

The gap between French 10-year bonds and German 10-year debt narrowed by 7 bps to 72.8 bps, but remained near last week's 12-year highs.

The euro, meanwhile, rose by as much as 0.5% to a two-week high of $1.0767. (Reporting by Amanda Cooper; Editing by Alun John and Stefano Rebaudo)