Euro zone CDS widen as concern deepens over debt

(Changes Italian to Irish in paragraph 2)

LONDON, Nov 30 (BestGrowthStock) – The cost of insuring most euro
zone government debt against default rose on Tuesday after the
EU and IMF’s 85-billion euro bailout of Ireland failed to dispel
fears that the rest of the region was out of financial danger.

As the yield spreads of euro zone peripheral nations rose
over those of benchmark Germany, 5-year credit default swaps on
Irish debt widened by 13 basis points to 625 basis points,
meaning it now costs 625,000 euros to insure 10 million euros’
worth of Irish bonds against sovereign default.

Five-year CDS on Spain and Portugal both widened by 22 basis
points to 373 and 560 basis points, respectively.

Five-year CDS for Ireland and Greece, the two euro zone
members to have received emergency funding this year, rose, with
Greek CDS up 18 basis points at 970.

Belgian CDS rose 13 basis points to 195 basis points, as the
difference between Belgian 10-year bond yields (BE10YT=TWEB: ) and
German Bunds (DE10YT=TWEB: ) hit its highest since the launch of
the euro.

French 5-year CDS rose 6 basis points to 105 basis points,
reflecting investor concern over the cost to the region’s core
members of bailing out weaker euro zone economies.

(Reporting by Amanda Cooper; Editing by John Stonestreet)

Euro zone CDS widen as concern deepens over debt