For the first time ever, Greece has borrowed with negative yield. Greece sold 488 million euros ($535.82 million) of three-month Treasury bills to refinance a maturing issue.
“The yield turning negative for the first time ever,” the country’s debt agency PDMA said on Wednesday.
The debt agency sold the new paper at a yield of -0.02 percent, down from 0.095 percent, in a previous sale in August.
The amount raised included 112.5 million euros in non-competitive bids.
The sale’s bid-to-cover ratio was 2.71, up from 1.59 in the previous auction. Settlement date is on October 11.
What does “borrowing with negative yield” means? Markets are now paying Greece for the privilege of lending it money, say some experts.
Unbelievable! #greece #interestrates pic.twitter.com/CR20MaWEcA
— Marcelo Lopez, CFA (@malopez1975) October 9, 2019
