Hungary’s debt sale is shunned

HUNGARY cut its 12-month bill auction offer yesterday and sold the bills at higher yields than two weeks ago as markets were still uncertain and awaiting proof the government’s economic plan could be implemented.

The bills were sold at an average yield of 5.35 per cent, compared with a yield of 5.17 per cent two weeks ago, before the market turmoil last week caused by the government’s mixed messages about the state of Hungary’s public finances. These comments spooked markets, triggering concerns that Hungary may be close to a Greek-style debt crisis.