Sovereign bond risk climbs to eight-week high after Greek swaps triggered

The cost of insuring against default on European sovereign bonds rose to the highest in eight weeks after the declaration of a credit event triggering $3.2 billion of Greek debt protection contracts.

The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments rose four basis points to 355 at 11 a.m. in London, the highest since January 18. An increase signals deterioration in perceptions of credit quality.

Investors are betting against Europe?s other troubled economies after the International Swaps

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