Greek borrowing costs dip in $1.7B T-bill auction

ATHENS, Greece -- Greece's debt management agency says the country's short-term borrowing costs have inched down in a new treasury bill auction that raised (EURO)1.3 billion ($1.7 billion).

An agency statement said Tuesday's sale of 26-week paper offered a yield of 4.46 percent, compared to 4.54 percent in the last similar auction last month.

The auction was 1.6 times oversubscribed, showing slightly lower investor interest than last month.

While debt-crippled Greece is blocked from raising money from bond markets, it maintains a small market presence through regular treasury bill issues _ which help fund its spending needs as its international bailout payments have been frozen.

The treasury bills are mostly bought by Greece's crisis-hammered banks, which need them as collateral to draw on emergency European funds.

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