Sovereign CDSs tighten on tough Irish budget

In the early hours of yesterday evening, the Irish parliament began the first round of voting on the latest austerity budget announced by finance minister Brian Lenihan. The proposals lay out €6 billion worth of spending cuts and tax rises for 2011. In reaction, credit default swap (CDS) spreads on five-year senior Irish debt tightened from 541 basis points at close of play yesterday to 534bp at 1:30pm London time today, according to financial information provider Markit. During th