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US Treasuries' debt protection costs jump to record

NEW YORK, July 11 (Reuters) - The cost to insure U.S. Treasury debt against default surged to a record on Friday on fears that the U.S. government may need to put capital into mortgage finance companies Fannie Mae FNM.N and Freddie Mac FRE.N, adding to government debt levels.

Investors are worried about increased Treasury debt supply after a report that the U.S. government may be considering a takeover of the two, which are country’s biggest mortgage finance companies.

The cost to insure Treasury debt with credit default swaps jumped to 16.5 basis points, or $16,500 per year for five years to insure $10 million in debt, from 8 basis points on Thursday, said an analyst. (Reporting by Karen Brettell; Editing by Tom Hals)

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