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UPDATE - Price of insuring Hungarian debt reaches two-year high

The cost of insuring Hungarian state debt rose on markets in London on Tuesday to highs not seen in more than two years as risk aversion grew on global markets.

CMA DataVision said that the benchmark 5-year mid-spread of Hungary's credit default swaps contracts (CDS) was around 573bp in trade in London late Tuesday, up from 550bp late Monday.

Hungary's CDS mid-spread was around 460bp at the beginning of September and around 255bp at the beginning of the summer.

A CDS contract valued at 573p means that the cost to insure every €10m worth of bond exposure against default is €573,000 a year for the benchmark five-year horizon.