PIIGS Skewered As CDS Spike

greece greek athens protest flag burn

CDS on PIGS sovereign debt is spiking again today as a result of domestic concerns in each economy, and more macro worries about the eurozone’s long term support of the fringe.

Data from CMA:

  • Greece, now at 827.9 bps, from Friday’s 795.5 close
  • Ireland, now at 495.8 bps, from Friday’s 473.4 close
  • Portugal, now at 389.1 bps, from Friday’s 379.0 close
  • Spain, now at 223.4 bps, from Friday’s 214.5 close

Greece is experiencing terrorism, Ireland is under pressure from a top economist, and Portugal just secured a new austerity budget.

But beyond that, the region wide widening is likely a result of the market pricing in concerns that after 2013, the eurozone’s powerhouses no longer have its weaker members’ backs.

That’s when the new eurozone policy that would allow for default without departure from the eurozone takes impact.

Check out Niall Ferguson’s complete guide to sovereign debt >

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