Greece sells 1.3 bln euros of 3-month T-bills, yield eases

Greece’s Public Debt Management Agency sold 1.3 billion euros of 3-month T-bills on Tuesday, with the yield easing by 36 basis points compared to a previous auction in February.

The sale’s bid-cover ratio was 2.69 versus 2.7 in the previous auction. The T-bills were priced to yield 4.25 percent, down from 4.61 percent in the Feb. 14 sale, the debt agency said.

Monthly T-bill sales are Greece’s sole source of market funding. Greek banks traditionally buy the bulk of the T-bill issues, meaning funding costs do not fully reflect market strains.

Tuesday’s auction will help roll over 1.6 billion euros of three month paper maturing on March 23.