NEW YORK Feb 18 The cost to insure U.S.
Treasury debt with credit default swaps jumped to a record high
on Wednesday as President Barack Obama unveiled another round
of spending designed to stem home foreclosures.
Credit default swaps on U.S. government debt widened 8.5
basis points to 90 basis points, or $90,000 per year for five
years to insure $10 million in debt, according to Markit. The
swaps had traded at less than 10 basis points a year ago.
President Barack Obama on Wednesday pledged up to $275
billion to help stem a wave of home foreclosures that sparked
the U.S. financial meltdown. For details, see [ID:nN17400254]
Swaps protecting the sovereign debt of Germany also rose 12
basis points to 85 basis points on Wednesday, while swaps on
Britain fell 4.5 basis points to 164.5 basis points, Markit
(Reporting by Karen Brettell; Editing by Chizu Nomiyama)