Dutch elections: markets not particularly concerned - BBH

Analysts at Brown Brothers Harriman explained that the populist-nationalist party candidate Wilders may garner a plurality of votes in the Dutch elections, and while this in itself is a feat, it still does not appear he will be able to find sufficient coalition partners to cobble together a government.  

Key Quotes:

"As we have noted, the success of populist-nationalists in the US and UK were functions of the main center-right party adopting their program rather than the populist-nationalists winning outright.  Note that UKIP lost a byelection last week in a district that voted heavily for leaving.   

The formation of a coalition government in the Netherlands may require the inclusion of a few smaller parties, which could make for a less stable arrangement.  The markets do not seem particularly concerned.  Consider that the Dutch two-year yield is off 20 bp over the past month, while German two-year yield is off 24 bp.  Although the record low German yield grabbed attention, the Dutch yield also fell to a record low of 84 bp (February 24)."