Greece sells 1.3 bln euro 6-month T-bills, yield falls to 1-yr low

Greece sold 1.3 billion euros ($1.69 billion) of six-month T-bills on Tuesday, with the yield slightly falling from a previous auction in September to its lowest level in more than a year, debt agency PDMA said.

The sale’s bid-cover ratio was 1.60, down from 1.95 in the September 4 auction. Greece paid a yield of 4.46 percent, 8 basis points less than in the previous sale and its lowest level since August 2011, according to PDMA data.

Monthly T-bill sales are Greece’s sole source of market funding to roll over previous debt issues. 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]