Monday, 21 May 2012 19:12
PARIS: Yields on one-year French treasury bills hit an historic low on Monday as investors showed strong demand for short-term paper, suggesting that France remains a safe-haven amid fears that Greece may have to leave the euro currency zone.
The T-bill auction followed strong demand for short- and medium term bonds at a separate auctions last week.
The Agence France Tresor debt management agency said on Monday it sold a total of 8.4 billion euros, at the top end of its predicted range of 7.2-8.4 billion euros.
AFT said it sold 1.998 billion euros of its 49-week BTF. Investor bids outstripped the number of bills on offer by almost three-to-one and yields dropped to 0.168 percent from 0.185 percent last week.
The agency sold 4.197 billion euros of the 12-week BTF at a yield of 0.070 pct. Demand was more than double the number of bonds on offer.
Yields on the 23-week BTF dropped to 0.096 percent from 0.111 percent. AFT said it sold 2.199 billion euros of the bills, with demand again more than two times higher than the number available.
Copyright Reuters, 2012