Greek credit default swaps fall

LONDON: The cost of insuring Greek debt against default fell on Tuesday on the back of better risk appetite and as Greek bond yields fell on a media report of a fresh bailout deal for Greece.

Five-year credit default swaps (CDS) on Greek government debt fell 33 basis points to 1,325 bps, according to data monitor Markit. This means it costs 1.325 million euros to protect 10 million euros of exposure to Greek bonds.

Earlier, the premium investors demand to hold Greek bonds rather than German debt narrowed with traders citing a media report of a possible deal to resolve Greece's debt problems. Greek finance ministry officials later denied the report.