Cost of insuring U.S. government debt against default at decade high as debt-ceiling fears grow

The cost of insuring U.S. government debt against default was at a decade high on Thursday, according to S&P Global Market Intelligence. The spread on 5-year U.S. credit default swaps widened to 49.68 basis points as of Thursday afternoon, according to S&P, nearly double its level of 26.28 basis points at the beginning of the year. Spreads have widened amid a standoff over the U.S. government debt ceiling. Analysts said lackluster April income-tax receipts are seen moving the so-called X-date, when the government will run out of special measures and no longer be able to pay its bills without an increase in the debt limit, potentially earlier than previously expected. Worries over the debt ceiling were seen sparking a rush into 1-month Treasury bills on Thursday.