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
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.