France's 5-Year CDS Reaches Highest Level Since June

The cost of insuring against default on French government bonds using credit default swaps has risen to its highest level in the past five months due to increasing political uncertainty in the country. Analysts at UniCredit Research noted that investors are worried about France's difficulties in approving next year’s budget. They stated, “Recent political developments in France suggest that French assets may underperform in the short term.” According to S&P Global Market Intelligence data, France's 5-year credit default swaps increased by 3 basis points to 38bps in morning trading on Wednesday, reaching the highest level last seen in June.