July 29, 2013 / 2:01 PM / 4 years ago

Freddie Mac sells $2.5 billion bills at lower rates

July 29 (Reuters) - Freddie Mac, the No. 2 U.S. home funding company, on Monday said it sold $2.5 billion of reference bills at lower rates and higher demand compared with the most recent sales of similar maturities and comparable amounts.

Freddie Mac sold $1 billion of three-month bills, due Oct. 28, 2013, at a 0.040 percent rate, down from the 0.048 percent rate for its sale of $1 billion three-month bills auctioned July 22.

The company sold $1.5 billion of six-month bills, due Jan. 27, 2014, at a 0.084 percent rate, down from the 0.094 percent rate for its July 22 sale of $1.5 billion six-month bills.

Demand for the three-month bills was stronger, with a bid-to-cover ratio of 4.97, up from the 4.75 ratio for the three-month bills sold a week ago.

Demand for the six-month bills was higher, at 4.43 compared with 3.98 for the six-month bills sold on July 22.

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 July 30.

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