Hungary default insurance costs fall year-low on IMF-EU talks outlook

The cost of insuring Hungary's sovereign debt against default fell further on Wednesday, dropping below 500 basis points for the first time since the start of the year. Credit default swap (CDS) spreads continued to narrow in anticipation of official talks on a backstop loan Hungary is seeking from the International Monetary Fund and the European Union. Both the IMF and EU said last week they were ready to start talks.