Irish CDS falls on increased aid deal expectations

The cost of insuring Irish debt against default fell on Thursday as investors grew increasingly confident that a deal would be reached on aid to the country. Five-year credit default swaps (CDS) on Irish government debt fell to 495 basis points, down 30 bps on the day, according to data monitor Markit. This means it costs 495,000 euros to protect 10 mln euros of exposure to Irish bonds.
"The IMF/EU rescue mission has travelled to Dublin for talks and the markets are now viewing some form of bailout as more than likely," said Markit analyst Gavan Nolan.
Portuguese and Greek sovereign CDS also fell.