Greece sells 1.3 bln eur 3-month T-Bills, yield eases
Greece sold 1.3 billion euros ($1.74 billion) of three-month T-bills on Tuesday to roll over a previous issue that comes due on Feb. 15, its debt agency (PDMA) said.
The T-bills were priced to yield 4.05 percent, two basis points below a previous Jan. 15 auction. The sale’s bid-cover ratio was 1.76, up from 1.75 in the previous auction.
The amount raised included 300 million euros in non-competitive bids.
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.
The finance ministry said retail investors can also subscribe for the issue at banks and brokerages for amounts up to 15,000 euros until Feb. 13, to buy T-bills at auction’s cut-off price of 98.987.
The interest income on the T-bills will be tax-free if retail investors hold them until maturity. [Reuters]
