April 8 Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $3 billion of reference bills in two deals at lower interest rates compared with the most recent auctions of comparable size and maturities, although demand was mixed.
Freddie Mac said it sold $1.5 billion of three-month bills, due July 8, 2013, at a 0.078 percent rate, down from the 0.107 percent rate for its sale of $1.5 billion of three-month bills on March 18.
The company also sold $1.5 billion of six-month bills, due Oct. 7, 2013, at a 0.114 percent rate, also down from a 0.130 percent rate for $1.5 billion six-month bills sold on March 18.
Settlement is April 9.
Monday's auction was 50 percent larger than last week's sale, when Freddie Mac sold $1.0 billion each of three-month and six-month bills.
Demand for the three-month bills was lower than two weeks ago, the last time it also sold $1.5 billion. Monday's bid-to-cover ratio was 4.67, down from the 4.72 ratio for the 3-month auction on March 18.
Demand for the six-month bills was higher, however, at 6.13 compared with 4.75 for its six-month bills sold on March 18.
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.