An announcement in mid-May that the US government was to extend Tarp funding to the life insurance sector sparked interest across the space, also helping spreads move lower.
 
In European sovereigns, there was increased bid/offer activity in the longer-dated ten year CDS for France, Germany and Portugal. For companies in Europe, there is a spread tightening in the five-year for Hypoveriensbank's subordinated. 
 
In Asia, volume at a corporate level remained predominantly in the Japanese market, due in part to stronger liquidity, says GFI. From a directional standpoint spreads also moved lower across Asia, buoyed by better economic data.
 
Turkey, Russia and Mexico were the three most active sovereigns joined by Brazil and Ukraine.