Greece sells 4.06 bln eur 3-month T-bills, yield rises

Greece sold 4.062 billion euros ($5.03 billion) of three-month T-bills on Tuesday, to roll over a previous issue and repay a government bond due Aug. 20, with the yield risings from a previous auction in July, debt agency PDMA said.

The sale’s bid-cover ratio was 1.36 down from 2.12 in the July 17 auction. Greece paid a yield of 4.43 percent, 15 basis points more than in the previous sale.

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 strains from the country’s debt crisis. [Reuters]