Greece sells 1.625 bln eur of 3-month T-bills, yield eases

Greece sold 1.625 billion euros ($2.17 billion) of three-month Treasury bills on Tuesday, with the yield easing from a previous auction in December, debt agency PDMA said.

The sale’s bid-cover ratio was 1.75, up from 1.73 in the Dec. 18 auction. The T-bills were priced to yield 4.07 percent, down from 4.11 percent in the previous sale.

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

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