Euro-zone CDS spreads widen sharply on debt fears ( EURUSD ) (by William L. Watts)

LONDON (MarketWatch) -- The cost of insuring Greek sovereign debt against non-payment soared further into record territory Monday after a Greek newspaper reported that Athens had asked the IMF and the European Union to start talks on restructuring its debt. A finance ministry spokesman said the reports weren't true, Reuters reported. The spread on five-year Greek credit default swaps widened by 86 basis points to 1,222 basis points, according to data provider Markit. That means it would cost $1.222 million annually to insure $10 million of Greek debt against default for five years, up from $1.136 million on Friday. The Portuguese CDS spread widened 20 basis points to 620 after Finland's euro-skeptic True Finns party made a strong showing in Sunday's national election, underlining concerns it could slow or block talks on a bailout for Portugal. The euro (cur_eurusd) fell 0.5% versus the dollar from Friday to trade at $1.4348.