Greece sells 1.625 bln euros of 3-month T-bills, yield drops

Greece sold 1.625 billion euros of three-month treasury bills on Tuesday to roll over a maturing issue, the country’s debt agency PDMA said.

The T-bills were priced to yield 3.95 percent, down from 4.02 percent in a September auction. The sale’s bid-cover ratio was 1.89, down from 1.94 in the previous sale.

The amount raised included 375 million euros in non-competitive bids. The settlement date for Tuesday’s auction will be Oct 18.

Greece lost access to bond markets three years ago, when its debt crisis erupted, and monthly T-bill sales are its sole remaining source of market funding.

Athens has a stock of about 15 billion euros of T-bills, which it regularly refinances with the help of Greek banks which buy and then deposit them as collateral to draw liquidity from the ECB.