Freddie Mac sells $2.5 bln bills at lower rates

Mon Dec 17, 2012 10:07am EST

Dec 17 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, said on Monday it sold $2.5 billion of reference bills at lower rates and weaker demand compared with the most recent sales of similar maturities.

Freddie Mac said it sold $500 million of one-month bills, due Jan. 14, 2013 at a 0.005 percent rate, down from the 0.100 percent rate for $500 million of one-month bills sold Nov. 19.

In addition, the company sold $1.0 billion of three-month bills, due March 18, 2013, at a 0.073 percent rate, down from the 0.118 percent rate for $1.5 billion three-month bills sold Dec. 10.

Freddie Mac also sold $1.0 billion of six-month bills, due June 17, 2013, at a 0.116 percent rate, also down from the 0.150 percent rate for $1.5 billion six-month bills sold last week.

Settlement is Dec. 18.

Demand for the one-month bills was lower, with a bid-to-cover ratio of 6.24, from the 6.59 ratio for the one-month bonds sold Nov. 19.

Demand for the three-month bills was down, with a bid-to-cover ratio of 4.17, versus 5.69 for its sale of three-month bills sold on Dec. 10, and demand for the six-month bills was also down, at 3.79 compared with 4.78 for six-month bills sold a week ago.

A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A lower ratio indicates weaker demand.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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