France sold 7.26 billion euros of bills today, close to its targeted amount, even as concern escalated the Greek political crisis may spread to other nations in the euro area.
The French debt-management body, Agence France Tresor, had sought to auction a maximum of 7.4 billion euros.
The country sold 3.993 billion euros of 13-week bills at an average yield of 0.074 percent compared with 0.082 percent in the sale on May 7. It’s average yield for the 1.775 billion euros of 24-week bills was 0.111 percent, down from 0.114 percent in the last auction. It also sold 1.492 billion euros of 50-week securities at an average yield of 0.185 percent, more than the 0.174 percent in the May 7 auction.
As Greece entered a second week of political deadlock, expectations grew that the country may leave the euro, adding to the risk of contagion for Italy and Spain.
Spain’s borrowing costs rose at a bill auction today and an Italian debt sale failed to assuage concern that the escalation of the Greek crisis risks overwhelming its Mediterranean neighbors. Spain sold 2.9 billion euros of bills, just below its maximum target. Italy auctioned 5.25 billion euros of debt, including its first bond of more than 10 years in seven months, as the Treasury reached the maximum set for the sale amid stronger demand.
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