Oct. 25 (Bloomberg) -- Citigroup Inc. sold $1 billion of 10-year senior notes after the cost to protect its debt from default dropped from the highest level in more than two years.
The third-biggest U.S. bank issued the 4.5 percent bonds to yield 245 basis points, or 2.45 percentage points, more than similar-maturity U.S. Treasuries, according to data compiled by Bloomberg.
Credit-default swaps on the New York-based bank have decreased to 229.7 basis points at 1:44 p.m. in New York, prices from data provider CMA show. The contracts have declined from 359.3 on Oct. 4, the highest level since July 2009, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.
Citigroup said on Oct. 17 that profit rose 74 percent in the third quarter, beating analysts estimates on a $1.9 billion accounting gain and a reduction in losses tied to soured loans.
--With assistance from Mary Childs in New York. Editor: Mitchell Martin
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