Freddie Mac launches $3 bln 5-year notes - source

NEW YORK, April 6 Wed Apr 6, 2011 9:16am EDT

NEW YORK, April 6 (Reuters) - Freddie Mac (FMCC.OB), the No. 2 U.S. home funding company, launched its new $3 billion five-year reference note sale on Wednesday, said a market source.

The notes, due May 27, 2016, were launched with a yield of about 25.5 basis points over comparable U.S. Treasuries.

Pricing is expected later on Wednesday with settlement on April 8.

Joint lead managers are Barclays, Citigroup and UBS. (Reporting by Pam Niimi; Editing by James Dalgleish)