Greece Leads Drop in Sovereign Bond Risk on Bailout Expansion

Europe’s peripheral governments led a decline in the cost of insuring the region’s debt, after leaders agreed to expand the rescue fund for indebted nations.

Credit-default swaps on Greece tumbled 94 basis points to 949, while contracts on Italy fell 19 to 161, Portugal dropped 39 to 484 and Spain declined 23 to 234, according to CMA. The Markit iTraxx SovX Western Europe Index of 15 governments was 11 basis points lower at 177.5, the biggest drop in five weeks.