NEW YORK, Nov 20 (Reuters) - Sellers of protection on CIT Group's bonds will pay buyers 31.88 percent the insurance they sold, after an auction was held on Friday to set a value for the company's credit default swaps.

CDSs on CIT's bonds are worth 68.12 cents on the dollar, said auction administrators Creditex and Markit.

The auction is the largest the CDS market has seen to date, with net volumes of more than $6 billion outstanding on the company's debt. Payments on the contracts were triggered when CIT earlier this month filed for a prepackaged bankruptcy.

(Reporting by Karen Brettell; Editing by Theodore d'Afflisio) Keywords: CIT SWAPS/AUCTION

(karen.brettell@thomsonreuters.com; +1 646 223 6274; Reuters Messaging: karen.brettell.reuters.com@reuters.net )

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.