Italian default insurance costs edge lower

LONDON: The cost of insuring against an Italian default fell on Monday as investors bet that ongoing elections in the country would not derail its reform agenda.

Five-year credit default swaps (CDS) on Italian government debt fell 5 basis points to 245 basis points, according to data monitor Markit. This means it costs $245,000 annually to buy $10 million of protection against an Italian default using a five-year CDS contract.

Italian stocks and bonds gained in early trade as a low turnout in Italy's general election encouraged investors to bank on a victory of a pro-reform centre-left coalition.