T-Bill auction to test investors’ appetite
Greece will auction 1.25 billion euros of 26-week T-bills on Tuesday, continuing its plan of monthly short-term debt sales, the country’s debt agency (PDMA) said yesterday.
The settlement date will be June 17. Only primary dealers will be allowed to participate and no commission will be paid, said PDMA.
Meanwhile, Greece’s government notes were little changed yesterday, with the two-year yield two basis points lower at 25.74 percent. The 10-year yield rose six basis points to 16.71 percent.
The cost of insuring against default on government debt sold by Greece surged to a record, according to traders of credit default swaps. Contracts on Greece soared to 1,534, according to CMA.
The benchmark German bund yield dropped seven basis points to 2.95 percent. Yields on two-year notes were also seven basis points lower, at 1.54 percent, the least since March 17.