Southern European sovereigns, Europe banks' CDS jump -IHS Markit

March 16 (Reuters) – Debt insurance costs for European banks and sovereigns rose sharply on Monday, shrugging off massive rate-cutting moves and liquidity injections by the U.S. Federal Reserve and other global central banks over the weekend.

Five-year credit default swaps for Italy’s UniCredit rose 33 basis points (bps) from Friday’s close to 243 bps, Deutsche Bank saw levels jump 18 bps to 138 bps while France’s Societe Generale saw a 10 bps rise, data from IHS Markit showed.

Sovereign debt CDS levels also gained with southern European issues suffering the sharpest increase. Italy saw CDS levels spike 18 bps to 246 bps to revisit last week’s levels while Spain gained 14 bps to 119 bps – its highest level since June 2016.

Portugal rose 12 bps to rise to 120 bps – the highest since May 2018, the data showed. (Reporting by Karin Strohecker; Editing by Saikat Chatterjee)

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