UPDATE 1-Greece sells 6-mth T-bills, yield rises 5 bps

* Greece raises 1.625 bln euros from sale

* Yield up 5 basis points to 4.8 pct vs March auction

* Bid-cover ratio 3.81 vs 3.6 in previous sale

* Foreign investors buy around 41 pct of issue

(Adds details, PDMA chief, dealer comment)

ATHENS, April 12 (Reuters) – Greece on Tuesday sold
six-month T-bills at a slightly higher yield than at a previous
auction in March, raising funds to roll over 2.4 billion euros
($3.47 billion) of maturing government paper later in the week.
The auction drew more interest from foreign investors, who
bought about 41 percent of the issue compared to 31 percent at
last month’s auction as the overborrowed euro zone member keeps
funding itself over short durations.

Tuesday’s issue fetched 1.625 billion euros, including 375
million in non-competitive bids. The issue was priced to yield
4.80 percent, up five basis points from last month and above the
rate of about 4.2 percent Greece pays on its EU/IMF bailout
loans.

Up until March, Greece was funding itself on short durations
at a lower cost than the 5.2 percent rate on its bailout loans.
A summit of euro zone leaders last month agreed to cut the rate
by one percentage point and stretch out the repayment period.
[ID:nL3E7EB0D7]

“The yield was around where we expected, the cover ratio as
well”, said a bond dealer at a big Greek bank. “Talk of debt
restructuring does not affect T-bills, they would not be
included. The higher allocation to foreign buyers is positive.”

Tuesday’s borrowing sortie took place amid still wide Greek
government bond yield spreads and continued talk of some form of
debt restructuring down the line. [ID:nLDE7361NL]
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BREAKINGVIEWS-Greek faces enormous task [ID:nLDE7270MX]
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Bond investors are asking Greece to pay 954 basis points
more than Germany to borrow for 10 years, with the yield spread
stuck near peak levels.

Debt agency PDMA needs to roll over 1.44 billion euros of
six-month T-bills and 960 million euros of one-year paper
maturing on April 15. It is set to auction 3-month T-bills the
following week.

Settlement date for the 26-week T-bill auction will be April
15. Only primary dealers will be allowed to participate and no
commission will be paid.
(Reporting by George Georgiopoulos; editing by Stephen Nisbet)

UPDATE 1-Greece sells 6-mth T-bills, yield rises 5 bps