CDS spreads fall for eurozone sovereigns

The cost of default insurance on eurozone sovereigns continued to fall today, with the decline most notable among the peripheral nations. According to financial information provider Markit, the spread on a five-year credit default swap (CDS) for Portuguese government debt tightened from 540 basis points at close of play yesterday to 525bp by 13:00 today.

This fall came as Portugal successfully issued almost €1.25 billion of debt at auction. However, a report recently released by analysts at Deut