European credit spreads were mixed in thin volume on Tuesday, with an extended US auto bailout the main focus. By 1420 GMT, the investment-grade Markit iTraxx Europe index was at 175.5 basis points, according to data from Markit, 4.5 basis points tighter versus late on Monday. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 1,013.5 basis points, 3.5 basis points wider.
Late on Monday, the Bush administration said it was increasing a loan to General Motors by $1 billion and buying $5 billion in equity in GMAC, GM's finance arm. GMAC's 8 percent bonds due 2031 tightened by 238 basis points to trade at a spread of 1,262 basis points over Treasuries, according to Tradeweb, a service of Thomson Reuters.