Three-month T-bill issue posts record low interest rate


The Public Debt Management Agency (PDMA) announced on Tuesday it had auctioned 13-week treasury bills at a record-low interest rate.

PDMA raised 812.5 million euros, against an original plan for €625 million, as the issue was almost twice oversubscribed (the coverage ratio reached 1.95) and the interest rate secured came to minus 0.32%.

In the previous three-month T-bill auction on November 4, 2020, the interest rate had come to -0.20%.

On top of the amount already raised, the issue’s primary dealers can additionally submit non-competitive bids up to 30% of the amount initially auctioned until Thursday, so the state is expected to collect a total of €1 billion.

The settlement date is this Friday and the T-bills mature on April 9.