Freddie Mac sells bills at lower rates

NEW YORK Aug 16 (Reuters) - Freddie Mac (FMCC.OB) said on Monday it sold $3 billion of bills at lower rates and weaker demand compared with last week's sale of similar maturities.

Freddie Mac sold $1.5 billion of three-month bills, due Nov. 15, 2010, at a stop-out rate of 0.160 percent down from a 0.174 percent rate for last week's sale of $2 billion of three-month bills.

The agency also sold $1.5 billion of six-month bills, due Feb. 14, 2011, at a 0.210 rate, also down from 0.230 percent for $2 billion of six-month bills sold a week ago.

Demand for the three-month bills was weaker, with a bid-to-cover ratio of 3.42 versus 4.09 for the Aug. 9, and demand for the six-month bills was also weaker, with a 3.40 ratio versus 3.92 for previous week's sale.

Settlement for bills sold this week is Aug. 17.

A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A lower ratio indicates weaker demand. (Reporting by Caryn Trokie; Editing by Theodore d'Afflisio)