The Markit iTraxx Japan index fell 1.5 basis points to 92.25 basis points as of 9:17 a.m. in Tokyo, Citigroup Inc. prices show. The measure is poised for its lowest close since Oct. 31, according to data provider CMA.
The Markit iTraxx Australia index decreased 1 basis point to 104.5 points as of 11:16 a.m. in Sydney, according to National Australia Bank Ltd. The benchmark rose 0.6 basis point last week, according to CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market.
The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan was little changed at 138 basis points as of 8:40 a.m. in Singapore, Standard Chartered Plc prices show. The gauge declined for the past four business days, according to CMA.
Credit-default swap indexes are benchmarks for insuring bonds against default and traders use them to speculate on credit quality. A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite.
The swap contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to meet its debt agreements.
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