Greek borrowing costs dip in new T-bill sale

AP News
Posted: Jan 15, 2013 6:24 AM

ATHENS, Greece (AP) — Greece's borrowing costs are continuing to fall following the latest successful auction of short-term debt that raised €1.62 billion ($2.16 billion).

The country's debt management agency says the yield on new 13-week treasury bills sold Tuesday reached 4.07 percent, down from 4.11 percent in last month's similar issue.

The issue was 1.75 percent oversubscribed.

Greece is being kept afloat by international rescue loans, provided since May 2010 when the country lost market credibility and the ability to borrow money through bond sales.

But Athens also holds regular short-term debt issues to maintain a market presence.

To secure the bailout cash, the country has implemented harsh spending cuts and tax hikes that lowered living standards and fuelled a recession that is in its sixth year.