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merci ji !
01/12/2008 17:03
LONDON, Nov 27 (Reuters) - The spread or risk premium on U.S. Treasury credit default swaps, essentially the price investors are paying to insure against the U.S. government defaulting on its debt, hit record highs on Thursday.
The cost of UK sovereign CDS was on track to close at its highest ever closing level, too, although liquidity and trading activity in both markets was extremely low because of the U.S. Thanksgiving holiday.
There was no trading of U.S. Treasury bonds because of Thanksgiving but there was some light activity in the CDS market from London-based traders.
Market participants are growing increasingly concerned about the scale of U.S. government programs worth hundreds of billions of dollars to buy or guarantee a range of financial assets, and boost the economy.
The same applies to the UK government, which said this week it will borrow record sums to revive the British economy.
On Thursday ten-year U.S. Treasury CDS widened to 60 basis points from Wednesday's close of 57.3 basis points, according to credit data company CMA DataVision.
That marks an increase of 10 basis points in only two days and an almost threefold increase since Lehman Brothers collapsed in mid-September.
Five-year U.S. Treasury CDS jumped to a record 55.0 basis points from Wednesday's close of 52.8 basis points, it said.
Meanwhile, five-year UK CDS was on track to close at 100 basis points, which would be a record and up from Wednesday's close of 96/3 basis points, CMA Datavision said.
Ten-year UK CDS was poised to close at a record 101.5 basis points compared with the previous day's close of 99.8 basis points.
© Thomson Reuters 2008 All rights reserved
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