The cost of Default protection (Note: translated in context below as 'default protection') for euro-denominated credit bonds has increased due to worsening market sentiment driven by heightened concerns over the valuations of AI companies. Strategists at Deutsche Bank pointed out that worries in the technology sector have overshadowed investors' optimistic expectations regarding the progress of U.S.-Iran negotiations. Data from S&P Global Market Intelligence showed that the iTraxx Europe Crossover index for euro high-yield credit default swaps rose by 3 basis points to 250 basis points, while the iTraxx Europe Main index for euro investment-grade credit default swaps climbed by 1 basis point to 52 basis points.
