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US government credit default swap spreads tick lower
The current government shutdown is not linked to debt ceiling concerns, which is when U.S. government CDS spreads typically rise due to fears politicians may not find an agreement before a sovereign default.
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Reuters - Mon, 10, Nov 2025
- 14:21 EST
- 9
The U.S. Capitol building after the U.S. Senate advances a bill to end the government shutdown in Washington, D.C., U.S., November 10, 2025. / REUTERS/Evelyn Hockstein
Spreads on U.S. government credit default swaps (CDS), market-based gauges of the risk of a sovereign default, ticked lower on Monday amid market optimism that the longest federal government shutdown in U.S. history may be coming to an end.
Five-year CDS spreads declined to 37 basis points, their lowest since Feb. 2025, from 39 on Nov. 7, according to S&P Global Market Intelligence data. Spreads also declined for one-year and six-month CDS, the data showed.
The current government shutdown is not linked to debt ceiling concerns, which is when U.S. government CDS spreads typically rise due to fears politicians may not find an agreement before a sovereign default. Still, CDS spreads had widened when the shutdown began on Oct. 1.
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