Freddie Mac sells $2.25 bln in bills at mixed rates

Mon Oct 28, 2013 10:24am EDT

Oct 28 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $2.25 billion of reference bills at mixed interest rates and mixed demand compared with the most recent sales of similar maturities and comparable amounts.

Freddie Mac sold $1 billion of three-month bills, due Jan. 27, 2014, at a 0.044 percent rate, down from the 0.050 percent rate for $1 billion three-month bills sold Oct. 21.

The company sold $1 billion of six-month bills, due April 28, 2014, at a 0.093 percent rate, also down from the 0.100 percent rate for $1 billion six-month bills auctioned a week ago.

Records going back to 2000 on the Freddie Mac website do not show a $250 million sale of one-month bills. A call to the company was not returned. The latest one-month bill sale is used as comparison.

Freddie Mac sold $250 million of one-month bills at a 0.010 percent rate vs a 0.005 percent rate for $500 million one-month bills sold Sept. 23.

Demand for the three-month bills was weaker, with a bid-to-cover ratio of 4.15, down from the 5.03 ratio for the three-month bills sold Oct. 21.

Demand for the six-month bills was also weaker at 3.37, down from the bid-to-cover ratio of 4.32 for the six-month bills sold last week.

Demand for the one-month bills was 6.50 compared with the 5.50 rate for the one-month bills sold Sept. 23.

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

Settlement is Oct. 29.