The U.S 1yr Sovereign credit default swap just hit at a record high

This represents the implicit cost of insuring U.S Treasury bonds against the risk of default?

Do we have a real risk here, or is this just related to the potential government shutdown when congress disagrees over how much to spend?

reuters

quote:

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Market jitters over the U.S. debt ceiling lifted the cost of insuring exposure to its debt to the highest level in over a decade on Thursday, while JPMorgan warned of a "non-trivial risk" of a technical default on U.S. Treasuries.

A showdown over U.S. government efforts to raise the $31.4 trillion debt ceiling for the world's largest economy has sent jitters through global financial markets. Some U.S. Treasury bill yields have hit fresh highs on fears that the deadline to raise the borrowing limit may come sooner than expected.

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