LONDON: The cost of insuring Egyptian debt against default edged up on Tuesday but other Middle Eastern debt insurance costs fell sharply, as tensions in the region eased.
Protesters in Egypt called for a push on Tuesday to eject President Hosni Mubarak from power after the government conceded little ground in talks with the opposition and tried to squeeze demonstrators out of central Cairo.
The Egyptian pound hit a fresh six-year low but investors were becoming less worried about unrest spreading to other Middle Eastern countries.
Egypt’s five-year credit default swaps edged up 2 basis points to 345 bps, according to Markit, but are more than 100 bps below peaks hit last week.
In Tunisia, central bank CDS fell 29 bps to 173 bps after a new drive to restore order three weeks after an uprising overthrew the president.
Moroccan CDS fell 21 bps to 173 bps, Lebanon was down 36 bps at 350 bps, Saudi CDS fell 14 bps and Bahrain’s fell 15 bps.
