The cost of protecting Greek government debt against default rose yesterday after data showed Greece’s economy shrank by a bigger-than-expected 1.5 percent in the second quarter. Five-year credit default swaps (CDS) on Greek government debt widened to 795 basis points (bps), up 32 bps on the day and compared with around 785 bps before the data was released, according to CDS monitor Markit. This means it now costs 795,000 euros per year to insure an exposure of 10 million euros of Greek government bonds. «Greece is widening after disappointing Q2 GDP figures,» said Markit’s Gavan Nolan. The 10-year Greek/German government bond yield spread was steady at around 810 bps. The latest Greek data weighed on the euro, yesterday sending it to a three-week low against the dollar as it underscored concerns about the eurozone’s recovery. The euro slid further to $1.2859 from $1.2882 after plunging more than 3 cents on Wednesday.