US government credit default swap spreads tick lower
Tweet
Share
E-mail
FILE PHOTO: People walk by the Federal Reserve Bank of New York in the financial district of New York City, U.S., June 14, 2023. REUTERS/Shannon Stapleton/File Photo
By Davide Barbuscia
NEW YORK (Reuters) -Spreads on U.S. government credit default swaps (CDS), market-based gauges of the risk of a sovereign default, ticked lower on Monday amid market optimism that the longest federal government shutdown in U.S. history may be coming to an end.
Five-year CDS spreads declined to 37 basis points, their lowest since February, from 39 on Friday, according to S&P Global Market Intelligence data. Spreads also declined for one-year and six-month CDS, the data showed.
The current government shutdown is not linked to debt ceiling concerns, which is when U.S. government CDS spreads typically rise due to fears politicians may not find an agreement before a sovereign default. Still, CDS spreads had widened when the shutdown began on October 1.
(Reporting by Davide Barbuscia, Editing by Nick Zieminski)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- US considers new sanctions on Brazilian judge, FT reports
- Iranian parliament advances bill to curb foreign influence
- Pope calls for an end to West Bank violence against Palestinians
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
