CDSs on European banks narrow as stock markets rally

Five-year senior credit default swaps (CDS) referencing Barclays -which confirmed on March 31 it would not subscribe to the UK government's asset-protection programme - moved in from 220 basis points last night to 211bp as of 10:40am BST this morning. HSBC - which has also opted not to sign up to the scheme - saw its CDSs tighten from 158.6bp to 154.6bp. Meanwhile, spreads referencing Royal Bank of Scotland tightened from 210.9bp to 208.3bp, and CDSs on Lloyds TSB narrowed from 207.5bp to 20