We noted earlier that T-Bills have merely sloshed the risk bucket from Oct/Nov to Feb [6] and it seems CDS markets have apparently not gotten the memo. Joking aside, either CDS traders have gotten really slow or as a result of the recent fiasco US default risk has been repriced to a permanently higher baseline, some 50% higher than where it was one short month ago.
USA CDS is now +3.5bps at 39.5bps - not what one would expect given equity euphoria that it's all fixed...
[7]
and for some context...
[8]