China CDS stuck at 6-week high on virus threat

LONDON, Jan 24 (Reuters) – The cost of insuring exposure to China’s sovereign debt remained at its highest level in six weeks on Friday amid rising concern over the spread of a virus that has killed 25 people and infected more than 800 in the country.

China 5-year credit default swaps traded at 36 basis points (bps), the same level it closed at on Thursday, having added 6 bps over the past week, according to IHS Markit.

China stepped up measures to contain the virus suspending public transport in 10 cities, shutting temples over the Lunar New Year, and rushing to construct a hospital to treat the infected. (Reporting by Karin Strohecker; editing by Thyagaraju Adinarayan)

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