UK sovereign CDS remains stable, analysts say bond market dumping is not a sovereign crisis

On January 8th, Jin10 Data reported that despite the surge in the UK's 30-year government bond yields to the highest level since the late 1990s, the country's sovereign credit default swaps (CDS) remained at relatively low levels. According to S&P Global Market Intelligence data, the 5-year UK CDS remained at 21 basis points, a level that prevailed for most of December, far below 36 basis points a year ago. Analysts at ING Bank said in a report, "This is not a sovereign crisis. The dumping of UK government bonds appears to be more a function of bond market-specific factors than investors demanding a risk premium for UK assets."