Greece sells treasury bills with negative yield for 1st time

The 13-week treasury bills were sold at a -0.02 percent yield, down from 0.095 percent from the previous similar auction conducted on Aug. 7 this year, according to an e-mailed PDMA press release.

It is the first time ever in its history that Greece borrowed money with a negative interest rate, Prime Minister Kyriakos Mitsotakis said addressing a meeting of the conservative ruling New Democracy party's parliamentary group, Greek national news agency AMNA reported.

The PM welcomed the development as one more signal that the Greek economy is on a strong comeback, recovering from the 10-year debt crisis.

"We are already borrowing from the markets with lower interest rates than ever... We have regained credibility. The country borrowed from the markets with only 1.5 percent when in March the previous government had secured 3.9 percent yield," he said, referring to Tuesday's reopening of a 10-year bond issue.

Greece raised 1.5 billion euros on Tuesday at a historically low coupon of 1.54 percent in its fourth foray in the money markets this year.

Greece exited the last of the bailout programs in August 2018. Shut out of the bond markets since 2010, after the start of the debt crisis, the country is gradually returning to the markets.

Regarding Wednesday's auction, total bids reached one million euros, the amount finally accepted was 487.5 million euros and on top of that, Primary Dealers can additionally submit non-competitive bids up to 30 percent of the amount initially auctioned until Oct. 10 (12 p.m local time) with settlement date Oct. 11, read the PDMA's press announcement. (1 euro= 1.10 U.S. dollars)