Greece sells 2.6 bln euros of T-bills

Greece sold 2.6 billion euros ($3.4 billion) of one- and six-month treasury bills on Tuesday to roll over maturing issues that come due January 11, its debt agency (PDMA) said.

PDMA sold 975 million euros of one-month T-bills priced to yield 3.95 percent and 1.625 billion of six-month paper at 4.3 percent, eight basis points below a previous sale in December.

The six-month auction’s bid-cover ratio was 1.69, up from 1.54 in the Dec. 11 sale.

Greek banks traditionally buy the bulk of T-bill issues, meaning funding costs do not fully reflect the strains from the country’s debt crisis. Banks can deposit the bills as collateral with Greece’s central bank to receive funding. [Reuters]