Citigroup's CDS spreads widen as job cuts announced

NEW YORK (Reuters) - The cost of protecting Citigroup's debt with credit default swaps rose on Monday and its bonds weakened amid news that the bank plans to cut about 50,000 people from its work force.

Five-year credit default swaps on Citigroup were quoted around a mid-level of about 225 basis points, or $225,000 a year to protect $10 million of debt, after closing on Friday at around 215 basis points basis points, according to data from Phoenix Partners Group.

Yields on Citigroup's 5.5 percent notes due in 2013 rose to 490 basis points over Treasuries, up 16 basis points from Friday, according to MarketAxess. Rising yield spreads generally indicate greater perceived risk. Citigroup on Monday confirmed news reports of major job cuts, saying it set a "near-term" headcount of about 300,000 employees, down from 352,000 in the third quarter and 375,000 at the end of 2007.

(Reporting by Dena Aubin; Editing by Theodore d'Afflisio)