BUSINESS

Foreign funds buy 3-month treasury bills

EIRINI CHRYSOLORA

TAGS: Finance, Markets

Foreign investment funds participated in an auction of Greek treasury bills on Wednesday for the first time since 2015, highlighting the improvement in the image of Greek debt since a provisional agreement was reached between the government and the country’s creditors last week on the second bailout review.

The Public Debt Management Agency (PDMA) drew 1.137 billion euros from the sale of three-month T-bills to refinance a maturing issue.

The foreign investment interest is seen as a positive development by market observers, although their optimism is reserved. After all, these bills are short-term, with a high degree of security.

Kathimerini understands that foreign funds covered about a quarter of the issue, participating with 250-270 million euros. The remainder was covered, as usual, by Greek banks, which recycled their previous paper.

The increase in demand meant that the bid-to-cover ratio of the sale came to 1.61, compared to 1.30 in the previous auction on April 12. The yield of the three-month paper remained unchanged at 2.70 percent. The settlement date of the new bills is this Friday.

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