Sovereign CDS are closing at their wides of the day with Portugal leading the way rising by 28 bps to a record 195. Spain is following, up by 20 bps at 150. Italy is wider by 10 bps to 130, Greece is up by 7 bps to 390 and Dubai is higher by 15 bps at 510. Also moving up to the highest since June ’09 is US CDS at 46 bps, up by 3 bps on the day. The UK and Germany are also at the widest since June ’09 with France at the widest since May ’09. Japanese CDS, the highest levered developed economy in the world, is down 3 bps on the day to 79, the lowest since mid Jan but will likely react tonight to the action in their peers.
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