Greece will commence the auction of Eur1.0 billion or US$1.29 billion treasury bills with a term of three months from issue. The date of the auction would be on May 14 and the proceeds would be used for the refinancing of a maturing issue.

The sale was confirmed by the country's debt management agency PDMA. The date of settlement would be on May 17, with primary dealers would be allowed to participate. The agency advised that there will be no commission paid out for the sale.

The remaining source of market funding available for Greece is the monthly treasury bill sales. Many Greek banks purchase the issues in bulk and deposit them as collateral to draw liquid assets from the central bank.

Just last month, the country sold off Eur1.625 billion or US$2.12 billion of three month treasury bills. The proceeds for this sale was used to roll over a previous issue that fell due last April 19. The Tbills in this sale is at a yield of 4.05% and has become standard for the these kinds of issues from the country.