T-bills’ 8.5-year low interest rate shows the next exit

T-bills’ 8.5-year low interest rate shows the next exit

During Tuesday’s auction conducted by the Greek Public Debt Management Agency, the interest rate on six-month treasury bills (T-bills) dropped to the lowest level of the last 8.5 years, following the general downward trend in government bond yields, which facilitates a new successful exit to markets in the near future. The particular interest rate of the T-bills fell by 0.37 points, since, on April 4 it stood at 1.07% whereas today stands at 0.70%. The yield on the six-month government bond is the lowest recorded in an auction during the memorandum era, as the lowest one had been issued at the auction of October 13, 2009 (dated October 16, 2009) and was at 0.59%.

It is important that this is the second lowest level historically, at least since there is evidence available, namely since July 31, 1985 when it was first issued at 17,50%. In the secondary bond market, the 10-year Greek bond fluctuated sharply between 3.833% and 3.933% as a result of slightly upward trends in the Eurozone, remaining below 4%. Like the 7-year-old, not only has it been fixed at less than 4% but in the last few days, it has been approaching levels below 3.50%. Due to the above events, alternative proposals are made for the duration and interest rates of the next exit to the markets, with all open options as to whether they are securities with a maturity of less than 10 years (6-year bond or longer – 12 or even 15 years ).

Today’s 26-week Treasury bills auction amounted to 875 million euros, and according to the data released by the Greek Public Debt Management Agency, the yield stood at 0.70%. The institutional investors concerned submitted total bids of 2.485 billion euros, which exceeded the requested amount by 2.84 times. This is a significantly improved picture compared to the previous auction on April 4, when 2,352 billion euros were offered at the same amount requested (875 million euros), with the overcapacity rate at 2,69%…. / IBNA