Freddie Mac sells $3.5 bln bills at lower rates

April 22 Mon Apr 22, 2013 10:08am EDT

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April 22 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $3.5 billion of reference bills at lower rates and mixed demand compared with the most recent sales of similar maturities and comparable amounts.

Freddie Mac said it sold $1.0 billion of three-month bills, due July 22, 2013, at a 0.060 percent rate, down from the 0.072 percent rate for its sale of $1.0 billion three-month bills on auctioned last week.

The company sold $1.5 billion of six-month bills, due Oct. 21, 2013, at a 0.100 percent rate, also down from the 0.114 percent rate for its sale of $1.5 billion of six-month bills sold on April 8.

Freddie Mac also sold $1.0 billion of 12-month bills due April 21, 2014 at a 0.134 percent rate, down from the 0.155 percent rate for its $1.0 billion of 12-month bills sold on Feb. 4, 2013.

Demand for the three-month bills was higher, with a bid-to-cover ratio of 6.12, up from the 5.42 ratio for the three-month bills sold April 15. Demand for the six-month bills was lower, at 5.05 compared with 6.13 for the six-month bills sold on April 8.

Demand for the 12-month bills was also lower at 5.38 versus 5.50 for the 12-month bills sold on Feb. 4.

A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A higher ratio indicates stronger demand, while a lower ratio indicates weaker demand.

Settlement is April 23.

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