CDS covering U.S. debt reflect default debate

10/3/2013 | Reuters

Credit default swaps for one-year U.S. government debt have risen 5 basis points, to 35 basis points, marking the first time the measure has eclipsed CDS on the five-year bond since July 2011, according to Markit Group. "It's down to the whole debt-ceiling debate as it raises the possibility of the U.S. defaulting, missing a payment," said Gavan Nolan, head of credit research. "It's unlikely, but there is still that near-term risk."

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