Japanese debt has become about the most expesnive in the world to insure.
The Bank of Japan\’s promise yesterday of a ¥15 trillion ($182 billion) cash injection into its banking system managed to soothe global equities, but not debt markets as Japanese government credit default swap rates used to insure against debt default soared 13 points to 92.
Greece’s credit default swaps fell by 60 basis points to 985 bps, with all other regional Eurozone states’ swaps falling with the exception of Ireland. (ANA-MPA) The yield spread between the 10-year Greek and German benchmark bonds eased below 940 basis points, from 965 bps early in the day.
Insuring Japanese Government debt costs 10% of the cost of insuring Greek Government debt and this makes Japanese debt asbout the most expensive in the world in insure?
You mean that Japanese rates have risen to as much as twice German? Half Spanish?
Our Murph, never a man to let a fact come in the way of a good ol\’ rant.