Freddie Mac sells $3 billion bills at higher rates, mixed demand

Mon Nov 25, 2013 10:02am EST

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Nov 25 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $3 billion of reference bills at higher interest rates and mixed demand compared with the most recent sale of similar maturities and comparable amounts.

Freddie Mac sold $1 billion of three-month bills, due Feb. 24, 2014, at a 0.090 percent rate, up from the 0.086 percent rate for $1 billion three-month bills sold last week.

The company sold $2 billion of six-month bills, due May 27, 2014, at a 0.120 percent rate, up from the 0.108 percent rate for $2 billion six-month bills sold Sept. 6, 2011, the most recent sale of $2 billion six-month bills.

Demand for the three-month bills was weaker, with a bid-to-cover ratio of 4.97, down from the 5.35 ratio for the three-month bills sold a week ago.

Demand for the six-month bills was stronger at 4.09, versus the bid-to-cover ratio of 3.49, for the six-month bills sold Sept. 6, 2011.

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

Settlement is Nov. 26.

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