Freddie, Fannie CDS spreads tighten after rescue plan

NEW YORK (Reuters) - The cost of protecting debt of Freddie Mac and Fannie Mae tumbled by more than 20 percent on Monday after the U.S. government announced emergency measures to bolster confidence in the mortgage giants.

The cost of protecting Freddie Mac's debt with credit default swaps for five years fell to 44 basis points, or $44,000 a year to protect $10 million of debt, down from 57 basis points at Friday's close, according to data from Markit Intraday.

Fannie Mae's five-year credit default swaps fell to 44 basis points from about 56 basis points on Friday, according to Markit.

(Reporting by Dena Aubin; Editing by Theodore d'Afflisio)