US CDS Levels Surge to Post-2023 Crisis Highs: A Sign of Growing Fiscal Uncertainty

The cost of insuring U.S. government debt against default has spiked, reaching its highest level since the 2023 debt ceiling crisis. This rise in credit default swap (CDS) rates reflects growing investor concern over America’s fiscal stability. The 1-year CDS rate is currently at its highest point since the crisis of 2023. Market volatility is anticipated as investors remain cautious, leading to uncertainty in financial markets. 1-Year CDS Rates Indicate Significant Stress on US Debt