Greece sells 1.3 bln eur 3-month T-bills, yield rises

ATHENS Tue May 15, 2012 5:14am EDT

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ATHENS May 15 (Reuters) - Greece sold 1.3 billion euros ($1.67 billion) of three-month T-bills on Tuesday, with the yield rising by 14 basis points from a previous auction in April.

The sale's bid-cover ratio was 2.32, down from 2.46 in the April 17 auction. Greece paid a yield of 4.34 percent, up from 4.20 percent in the previous auction, the debt agency said.

Monthly T-bill sales are Greece's sole source of market funding. Greek banks traditionally buy the bulk of the T-bill issues, meaning funding costs do not fully reflect market strains.

Tuesday's auction will fund the rollover of a previous 1.6 billion euro issue that falls due on May 18.

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