Italy sovereign, bank CDS soar as coronavirus spreads in Europe

LONDON, Feb 24 (Reuters) - The cost of insuring exposure to debt issued by Italy’s government and banks rose on Monday after the country struggled to contain the worst coronavirus outbreak outside Asia, which claimed four lives and infected hundreds.

Five-year credit default swaps (CDS) for Italy’s sovereign debt jumped 13 basis points (bps) from Friday’s close to 112 bps, their highest level since end-January, according to data from IHS Markit. CDS of the country’s major lenders UniCredit and Intesa Sanpaolo added 5 and 6 bps respectively.

Chinese sovereign CDS climbed to a three-week high of 38 bps, while Turkey’s rose to 298 bps, the highest in more than two months. (Reporting by Karin Strohecker; editing by Sujata Rao)