European Bond Risk Rises as Central Bank Lowers Interest Rates

The cost of insuring against default on sovereign and corporate debt rose after the European Central Bank cut interest rates to a record low, while refraining from announcing additional steps to boost the economy .

The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose 10 basis points to 279.5 at 3:40 p.m. in London. An increase signals deterioration in perceptions of credit quality; a decline, the opposite.