Investors fear a US default

United States default insurance rose sharply in price, reaching a new peak - investors are worried about the prospect of the country's insolvency. Credit default swaps with maturity in one year rose to 152 bp, beating the previous record of 134 bp. About this writes the portal investing.com, referring to the Business Insider.

As the edition notes, such dynamics indicates an attempt of swap holders to hedge against the risk of non-fulfillment of obligations by the borrower. The situation is exacerbated by lack of agreement in the U.S. government on the expansion of the limit of public debt. At the same time, Treasury Secretary Jennet Yellen said that early next month the U.S. will become insolvent without additional loans; this, she said, would cause an unprecedented crisis in the country.

Investors' attention this week is also focused on U.S. inflation data for April, which will be released Wednesday. Analysts expect it to remain unchanged at 5%.