CIT CDS valued at around 70.25 pct in auction

NEW YORK Nov 20 (Reuters) - Sellers of protection on CIT Group's CITGQ.PK bonds will need to make payments of around 30 percent the insurance they sold on the bankrupt commercial lender, based on the initial results of an auction on Friday to value its credit default swaps.

CDSs on CIT's bonds are worth around 70.25 cents on the dollar, said auction administrators Creditex and Markit.

The auction is the largest the CDS market has seen to date, with net volumes of more than $6 billion outstanding on the company's debt. Payments on the contracts were triggered when CIT earlier this month filed for a prepackaged bankruptcy. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio)