LONDON (MNI) – Greece sold E1.56 billion in T-bills at auctions
Tuesday, and more than it originally indicated for at its 26-week and
52-week maturities.
The PDMA sold E780 million of 26-week T-bill at an average yield
4.55%, with a cover ratio of 7.67 times and E780 million of the 52-week
T-bill at average yield 4.85% and cover ratio of 6.54 times.
Ahead of the auction, the Greek debt agency indicated it would sell
E1.2 billion in a combined sale. Traders expected decent auction results
given risk of short-term funding crisis has receded after EMU finance
ministers agreed up to E30 billion in a backstop package for Greece on
Sunday – more than enough to cover Athens borrowing plans for the
remainder of this year.
In addition, the auctions were seen supported by redemption of
T-bills for E985 million, which are also due today. Greek spreads
extended their tightening move against German Bunds after the auction
results, trading 5 basis points tighter at +345 basis points.
–London newsroom: 00 44 20 7862 7494; email: nshamim@marketnews.com
[TOPICS: MNXAU$,M$X$$$,MFXBO$,MGX$$$,M$$FI$]
