LONDON (MNI) – Greece’s decision to switch from quarterly to
monthly Treasury bill auctions is in order to “optimize its liquidity
management,” the head of the Public Debt Management Agency told Market
News International.
In an emailed response to questions from MNI, Petros Christodoulou
also said the decision was meant “to avoid absence from the market for 3
months at a time and achieve more regular access to the market.”
His comments come after the Greece’s Public Debt Management Agency
(PDMA) announced Tuesday that it will switch from quarterly to monthly
Treasury bill auctions, starting from September 2010. It will sell
maturities of 13 weeks, 26 weeks and/or 52 weeks.
Greece last sold 13-week T-bills on July 20 for E1.95 billion, more
than the E1.5 billion it originally had indicated, at an average yield
4.05%, with a cover ratio of 3.85 times.
This compared to a 3.65% yield when the debt agency previously sold
the 13-week T-bill issue in April.
The monthly T-bill sales come ahead of forthcoming T-bill
redemptions on Oct 15, when an old 52-week issue matures for E1.28
billion and also a 26-week issue for E960 million. Following that, a
13-week T-bill will mature on Oct 22 for E1.95 billion.
While the EU-IMF’s E110 billion emergency funding programme was
designed to cover Greece’s financing needs until the end of Q1 2012, it
was also intended to act as a shield and help Greece make a full return
to markets, which is expected to be in 2011.
–London newsroom: 00 44 20 7862 7494; email: nshamim@marketnews.com
[TOPICS: MNXAU$,M$X$$$,MFXBO$,MGX$$$,M$$FI$]
