20110125
Reuters
LONDON (Reuters) - The cost of insuring the debt of Egypt and Lebanon against default or restructuring rose sharply on Tuesday due to deepening political instability in both countries, data from Markit showed.

Egyptian five-year credit default swaps were quoted at 335 basis points, a new 18-month high, up from the previous session's close of 312 bps.

Thousands of protesters have gathered in central Cairo as part of a countrywide demonstration against President Hosni Mubarak and his government. Unrest has broken out in many Middle Eastern and North African countries since the toppling of Tunisian leader Zine al-Abidine Ben Ali this month.

In Lebanon, hundreds of angry protesters blocked roads across the country after a Hezbollah-backed politician was named prime minister, shifting the balance of power towards Iran and Syria.

Five-year CDS for Lebanon also surged on Tuesday and were quoted at 390 bps or 25 bps higher than the Monday close, Markit said. That is the highest since May 2009.