Morgan Stanley, Wachovia CDS tightens amid deal talk

NEW YORK, Sept 18 (Reuters) - The cost of protecting debt of Morgan Stanley (MS.N) and Wachovia Corp WB.N fell on Thursday following a report of deal talks between the two financial firms.

Five-year credit default swaps on Morgan Stanley fell by 108 basis points to 890 basis points, or $890,000 a year to protect $10 million of debt, while Wachovia's swaps fell by 47 basis points to 700 basis points, according to data from CMA DataVision. For details click on [ID:nN17405535].

Other financial firms' credit spreads were also tighter after a coordinated push by the world's leading central banks to pump billions of dollars into global financial markets. Goldman Sachs' (GS.N) swaps fell by 90 basis points to 530 basis points, according to CMA DataVision. (Reporting by Dena Aubin; Editing by Theodore d'Afflisio) (dena.aubin@thomsonreuters.com; +1-646-223-6325; Reuters Messaging: dena.aubin.reuters.com@reuters.net))