Greece holds six-month T-bill auction

Greece sold 1.625 billion euros ($2.03 billion) of six-month T-bills on Tuesday, with the yield rising by four basis points from a previous auction in May.

The sale’s bid-cover ratio was 2.14, down from 2.6 in the May 8 sale. Greece paid a yield of 4.73 percent, up from 4.69 percent in the previous auction, 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 fund the rollover of a 2.0 billion euro issue that falls due on June 15. [Reuters]