Treasury credit default swaps rise dramatically
As you would expect, the market sees the U.S. Government as much less creditworthy. Note the rise in credit default swaps on U.S. Treasuries.
The question is: when will its foreign government supporters abandon a sinking ship.
This is from FT Alphaville, a great blog site by the FT:
Pace Jim Rogers.
Actual numbers: cost of protecting U.S. government debt up 2 basis points to 22bp at close Tuesday, exceeding March all-time-high of 20bp. HT Alea: “In normal times, the spread [full stop] is less than 2bp.”