The political uncertainty in France is worsening, causing an increase in the prices of credit default swaps on French banks.

Due to the increasing political uncertainty in France, investors are taking cautious measures, leading to a rise in French bank credit default swap prices. French Prime Minister Franois Baru will face a vote of confidence on September 8, triggering unease in the French market. "Traders are increasingly concerned about a new round of political turmoil, which could worsen in the coming weeks," said Joshua Mahony of Rostro in a report. S&P Global Market Intelligence data shows that the 5-year credit default swap spread for BNP Paribas in France has risen by 1 basis point to 43 basis points. The 5-year credit default swap spread for Societe Generale in France has risen by 3 basis points to 49 basis points.