Insuring euro debt leaps to record highs

first_img whatsapp THE cost of insuring Spanish, Portuguese and Belgian debt is at or close to record highs, with Ireland’s bailout crisis spilling into the bond markets of other peripheral Eurozone countries. Ten-year credit default swaps (CDS) on Spanish government debt are at record highs, reaching 312 basis points (bps) yesterday. That means that it costs €312,000 to insure €10m worth of long-term Spanish debt. Meanwhile, Portuguese CDS spreads are at peaks last seen on 11 November, when German chancellor Angela Merkel declared that private bondholders should accept haircuts on their investments if a country defaults. Ten-year CDS reached 431bps yesterday. Irish CDS spreads also widened 16 points to 595bps, while Belgian CDS hit a record, doubling in price to 302bps. The spread between the yield on peripheral Eurozone sovereign bonds and German bunds also reached a record for some countries yesterday. The Irish-German spread rose to an all-time high of 734bps, while the Portuguese-German spread hit 430bps, 30bps short of its record high. The movements show that despite repeated attempts to reassure markets, Eurozone leaders have failed to prevent the investor flight from countries in financial difficulties.Capital Economics’ Ben May said: “With worries about the political situation and the banks unlikely to ease any time soon, Ireland could effectively be locked out of the bond markets for a prolonged period.”FAST FACTS | EUROZONE DEBT● The cost of borrowing for Portugal, Belgium and Ireland has soared to record highs in recent weeks. ● The spread between Irish bond yields and German bond yields is at a record high of 734bps. KCS-content whatsapp Tags: NULL Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Show Comments ▼center_img Thursday 25 November 2010 8:12 pm by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodaySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldHealthyGem”My 600-lb Life” Star Dropped 420 Pounds, See Her NowHealthyGem Insuring euro debt leaps to record highs Sharelast_img

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