The cost of insuring Egyptian debt against default fell on Tuesday as investors became less nervous about a possible change of government.
Crowds gathered in central Cairo on Tuesday for a protest they hoped would swell to a million people, demanding an end to the 30-year-rule of President Hosni Mubarak.
Egypt’s five-year credit default swaps fell 24 basis points from Monday’s close to 412 bps, according to Markit, down from April 2009 highs at 450 hit on Friday and again on Monday.
Other Middle Eastern CDS prices edged up, after coming off their highs late in the previous session.
Tunisia central bank five-year CDS rose 5 bps to 220, Morocco gained 2 bps to 212, Saudi Arabia rose 3 bps to 118, Bahrain gained 5 bps to 215 and Lebanon rose 9 to 390 bps.
Debt markets shrugged off a credit rating downgrade of Egypt by Standard & Poor’s, to BB from BB+.
Source : Reuters
