Yield on short-term debt eases slightly

Kathimerini English - - Business & Finance -

Greece raised 1.63 bil­lion eu­ros yes­ter­day through a sale of 13week trea­sury bills at a lower in­ter­est rate than last month, the Pub­lic Debt Man­age­ment Agency (PDMA).

The PDMA said the bills were at a yield of 4.06 per­cent, down slightly from the pre­vi­ous rate of 4.10 per­cent at an April 19 auc­tion. The agency says yes­ter­day’s auc­tion was more than three times over­sub­scribed.

For­eign in­vestors bought 31 per­cent of the bills, PDMA added.

Ear­lier yes­ter­day, Greek twoyear yields fell 13 ba­sis points to 24.78 per­cent. The 4.6 per­cent se­cu­rity due in May 2013 gained 0.175, or 1.75 eu­ros per 1,000-euro face amount, to 70.87. Tenyear yields were lit­tle changed at 15.63 per­cent.

Por­tuguese 10-year yields fell four ba­sis points to 8.93 per­cent af­ter the coun­try be­come the third mem­ber of the 17-nation cur­rency bloc af­ter Greece and Ire­land to re­ceive emer­gency loans from the Euro­pean Union and the In­ter­na­tional Mon­e­tary Fund.

The de­ci­sion by Euro­pean fi­nance chiefs on Mon­day to pro­vide as­sis­tance to Por­tu­gal brought to 256 bil­lion eu­ros the aid pro­vided to stamp out the Europe’s sov­er­eign debt cri­sis.

“Pe­riph­eral mar­kets were giv- en a bit of re­lief by events overnight,” Nick Sta­menkovic, an Edinburgh-based fixed-in­come strate­gist at RIA Cap­i­tal Mar­kets Ltd, told Bloomberg.

“That’s taken the shine off bunds, and the re­cent rally has run out of steam.”

Two-year Ger­man note yields were two ba­sis points lower at 1.79 per­cent, while 10-year yields were one ba­sis point lower at 3.10 per­cent.

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