Tags: EU | Greece | Financial | Crisis

Greece Raises $2 Billion in Treasury Bill Sale

Tuesday, 20 Apr 2010 07:10 AM

Greece has raised 1.5 billion euros ($2 billion) in a 13-week treasury bill auction that was more than four times oversubscribed, the public debt management agency said Tuesday.

The auction was aimed at shaving the country's crucial borrowing requirement for May, as Athens mulls whether to use a joint eurozone-International Monetary Fund rescue package. Talks with European and IMF officials on the package are due to start in Athens Wednesday.

Tuesday's auction was oversubscribed by 4.61 times, with 6.921 billion euros in offers, the debt management agency said. The yield for the 13-week bills stood at 3.65 percent, compared to the 1.67 percent yield from a similar bill issued in January that was oversubscribed by 3.23 times.

Last week, Greece successfully raised 1.56 billion euros in six and 12-month treasury bill auctions, but at punishingly high rates. The yield for the 12-month bill sold last Tuesday stood at 4.85 percent compared to 2.2 percent for the previous issue in January, while the yield for the 6-month bills was 4.55 percent compared to 1.38 in a similar auction in January.

Greece's cost of borrowing has spiraled in recent weeks. The interest rate gap, or spread, between Greek 10-year government bonds and their benchmark German equivalent on Tuesday hit another record high at 4.74 percentage points. Greece is struggling to borrow at acceptable cost so it can avoid default or asking for a eurozone bailout.

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Greece has raised 1.5 billion euros ($2 billion) in a 13-week treasury bill auction that was more than four times oversubscribed, the public debt management agency said Tuesday.The auction was aimed at shaving the country's crucial borrowing requirement for May, as Athens...
EU,Greece,Financial,Crisis
233
2010-10-20
Tuesday, 20 Apr 2010 07:10 AM
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