NEW YORK, July 17 (Reuters) - The cost to insure the debt of U.S. lender CIT Group Inc CIT.N fell early on Friday, after traders in the Treasury bond market said there was speculation a buyer might emerge for the struggling lender.

CIT's credit default swaps narrowed to about 44.5 percent as an upfront cost, from about 48 percent late on Thursday afternoon, according to Phoenix Partners Group data. (Reporting by John Parry; Editing by Theodore d'Afflisio)