Greece raises 1.6 bln eu­ros in debt sale

Kathimerini English - - Business & Finance -

Greece raised 1.62 bil­lion eu­ros in short-term debt yes­ter­day at a marginally higher in­ter­est rate than at a sim­i­lar debt auc­tion last month.

The auc­tion of 26-week trea­sury bills had an in­ter­est rate of 4.88 per­cent, slightly above the 4.80 per­cent at a sale in April, the Pub­lic Debt Man­age­ment Agency (PDMA) said.

The agency had orig­i­nally been seek­ing to raise 1.25 bil­lion eu­ros, but bor­rowed more as in­vestor in­ter­est was strong – al­though slightly weaker than at the April 12 auc­tion.

Yes­ter­day’s sale was 3.58 times over­sub­scribed, com­pared with 3.81 times in April.

For­eign­ers are be­lieved to have bought 34.2 per­cent of the is­sue.

Mean­while, Greek gov­ern­ment bonds rose yes­ter­day. The gains pushed the yield on the two-year note down by the most in a week.

“The rea­son be­hind the rise in Greek bonds is the ru­mor about a dis­cus­sion for an­other bailout pack­age,” Alessan­dro Giansanti, a se­nior rates strate­gist at ING Groep NV in Am­s­ter­dam, told Bloomberg.

“It’s tem­po­rary good news for Greece and even for the other pe­riph­er­als. We will have a short­term rally but it will not change the big­ger pic­ture.”

The Greek two-year

yield dropped 83 ba­sis points to 24.78 per­cent af­ter de­clin­ing by as much as 95 ba­sis points, the most since May 3. The 10-year bond yield fell 30 ba­sis points to 15.41 per­cent.

Ger­man bonds fell as stock mar­ket gains re­duced de­mand for safety amid spec­u­la­tion the Euro­pean Cen­tral Bank will judge that the re­gion’s econ­omy is able to with­stand higher in­ter­est rates.

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