Debt Insurance Costs Jump as Market Gauges Risk of Hard Landing

The cost to insure Asia investment-grade debt against default is on track for its biggest fortnightly increase in two months, as investors speculate the Federal Reserve might tighten policy at the sharpest pace since 1982, potentially denting economic momentum.

Asia credit default swaps rose at least three basis points on Friday, according to traders, tracking a North-America gauge that neared its highest since mid 2020 overnight.

Spreads on high-grade Asia dollar notes widened as well, while a portion of the U.S. Treasury yield curve inverted. That suggests concerns the Fed’s campaign against price pressures -- with possibly three consecutive half-point ...