The cost of insuring Hungary's sovereign debt fell further on Thursday, but the forint weakened and government securities yields rose after National Economy Minister György Matolcsy revealed details of “crisis taxes” planned by the government on Thursday.
The price of insuring Hungary's sovereign debt against default fell further to about 248bp on Thursday from 258.2bp at the close of the market on Wednesday, analysts at CMA DataVison, which tracks the market for credit default swaps, told MTI. On Tuesday, Hungary's CDS spreads closed at 270.2bp.
The forint weakened from about 272 to a little past 274 to the euro after Matolcsy spoke about the government's action plan on Thursday.
Benchmark yields on the secondary market for government securities, set each day by the Government Debt Management Agency (AKK) around noon, were up 25-29bp for terms over a year. (MTI-Econews)