European CDS spreads widen

European corporate credit default swap spreads widened on Monday in thin volumes, with many investors and traders absent for holidays, although disappointing economic data may dampen sentiment. By 0632 GMT, the investment-grade Markit iTraxx Europe index was at 113 basis points, according to data from Markit. That is 0.5 basis points wider compared with late on Friday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 513.5 basis points, 2.5 basis points wider. A initial positive reaction to European growth data on Friday was eroded by fresh fears about banks' ability to fund themselves after the Bank of Spain said the country's banks borrowed 140 million euros from the European Central Bank in July.