Bonds of U.S. lender CIT Group Inc weakened while the cost to insure debt of the embattled commercial lender rose on Thursday.

The lender has warned that even though it obtained emergency funding from bondholders, it might still be forced into bankruptcy.

CIT's credit default swaps rose to about 50.5 percent as an upfront cost, from about 49 percent late on Wednesday afternoon, according to Phoenix Partners Group data. The company's floating-rate notes due in August fell 3.625 cents on the dollar to 80.25 cents, according to MarketAxess data.

(Reporting by Walden Siew; Editing by James Dalgleish)

United States