CIT Group CDS valued at 68.12 pct in auction

NEW YORK Nov 20 (Reuters) - Sellers of protection on CIT Group's CITGQ.PK bonds will pay buyers 31.88 percent the insurance they sold, after an auction was held on Friday to set a value for the company's credit default swaps.

CDSs on CIT's bonds are worth 68.12 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)