Greek 5-year CDS falls after EU backs Greek plan

LONDON Feb 3 (Reuters) - The cost of insuring Greek government debt against default fell to 373,600 euros per 10 million euros of exposure on Wednesday, according to five-year credit default swap prices from CMA DataVision.

The cost fell from 387,300 euros at the New York close on Tuesday, after the European Commission endorsed Greece's plan to reduce its budget deficit below three percent of gross domestic product by 2012. [ID:nBFA001045]. That cost is now well below last week's record closing high of 422,500 euros.

The cost of insuring five-year Portuguese government debt slipped to 166,200 euros per 10 million euros of exposure from 167,300 euros at the New York close. Five-year Spanish credit default swaps were marginally wider at 133.8 basis points from 133.5 bps at the New York close, CMA Datavision said.

The gap between Greek and German benchmark 10-year government bond yields shrank to session lows around 327 bps on the EC news.

(Reporting by Emelia Sithole-Matarise)