Greece sells 1.625 bln euros of 6-month T-bills

Greece sold 1.625 billion euros ($2.00 billion) of six-month T-bills on Tuesday, with the yield slightly falling from a previous auction in June.

The sale’s bid-cover ratio was 2.16, up from 2.14 in the June 12 auction. Greece paid a yield of 4.70 percent, three basis points below the previous auction, the debt agency said.

Monthly T-bill sales are Greece’s sole source of market funding. Greek banks and social security funds traditionally buy the bulk of the T-bill issues, meaning funding costs do not fully reflect strains from the country’s debt crisis.

Greece’s second EU/IMF bailout plan approved earlier this year hopes to reduce the country’s reliance on T-bills.

Tuesday’s auction will fund the rollover of a previous 2 billion euro issue that comes due on July 13. [Reuters]