Freddie Mac sells $2 bln bills at lower rates, higher demand

March 4 Mon Mar 4, 2013 9:59am EST

March 4 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $2 billion of reference bills at lower rates and higher demand compared with last week's sale of similar maturities.

Freddie Mac said it sold $1 billion of three-month bills, due June 3, 2013, at a 0.123 percent rate, down from the 0.137 percent rate for its sale of $1.5 billion three-month bills sold Feb. 25.

The company sold $1 billion of six-month bills, due Sept. 3, 2013, at a 0.145 percent rate, down from a 0.149 percent rate for $1.5 billion six-month bills sold last week.

Demand for the three-month bills was stronger, with a bid-to-cover ratio of 6.12, up from the 4.82 ratio for the three-month bills sold Feb. 25. Demand for the six-month bills was also higher, at 5.47 compared with 3.95 for six-month bills sold a week ago.

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

Settlement is March 5.

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Comments (1)
kovurae wrote:
Does anybody realize that fannie and freddie IS the government and that the reason the dow is closing at all time highs because the GOVERNMENT is buying bonds and selling these notes from fannie and freddie. Thanks media for keeping this all secret. DO YOUR JOB MEDIA!

Mar 05, 2013 4:48am EST  --  Report as abuse
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