The U.S. government's decision to absorb more private-sector debt has driven up the spreads on credit default swaps for U.S. government debt. The protection costs rose to 97 basis points Tuesday, up 60% from the end of last year. "Having effectively guaranteed the short-term markets, that risks shifts to the government," Bank of America Securities-Merrill Lynch analysts, led by Jeffrey Rosenberg, wrote in a note to clients.

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