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Sovereign Debt Risk Surges to Record on Greek Default Concern

The cost of insuring European sovereign debt rose to a record on concern Greece will default if its government fails to pass an austerity plan this week, triggering a banking crisis across the region.

The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose 3 basis points to a record 246 at 11:30 a.m. in London. Swaps on Greece climbed 28 basis points to 2,143, signaling an 84 percent probability of default within five years, according to CMA.