Market Extra: Cost of insuring against default on U.S. government debt reaches record high

by | May 10, 2023 | Stock Market

The cost of insuring U.S. government debt against a default soared to its highest level ever on Wednesday amid a continued impasse on the U.S. debt ceiling in Washington.The spread on one-year U.S. credit-default swaps widened to a record high of 175 basis points from 163 basis points on Tuesday, based on data from S&P Global Market Intelligence. Moreover, the one-year U.S. CDS spread is now far wider than comparable spreads for Mexico, Greece and Brazil — which stood at 34 basis points, 44 basis points, and 56 basis points respectively on Wednesday. The…

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