Japanese CDS spreads increase in aftermath of devastating earthquake

The cost of insuring against a Japanese sovereign default registered a significant rise today, as the nation reeled from the impact of the largest earthquake in its history. The quake struck on Friday, triggering a tsunami that inflicted massive damage on the low-lying coastal areas in the east of the country – thousands of deaths have already been confirmed, with more than 10,000 people still missing.

With the heavily indebted government now facing extensive rescue and reconstruction costs