LONDON Oct 11 The cost of insuring exposure to
South African debt leapt to three-month highs on Tuesday and
dollar bond prices fell after respected finance minister Pravin
Gordhan was issued a formal summons to appear in court.
Gordhan is highly respected by financial markets, but is
being investigated in relation to the establishment of a special
tax unit a decade ago He has described
the allegations as "political mischief".
Data from Markit showed that five-year credit default swaps
(CDS) for South Africa rose more than 13 basis points (bps) on
the day to 264.6 bps, the highest since July 11.
South African dollar bonds also fell across
the curve by as much as 2.2 cents, according to Tradeweb, to the
lowest since end-June.
(Reporting by Karin Strohecker and Claire Milhench)