Freddie bill sale - lower rates, weaker demand

NEW YORK, July 6 (Reuters) - Freddie Mac (FRE.P) (FRE.N) said its sale of $3 billion of bills on Monday brought lower rates and drew weaker demand compared with the most recent sales of the same maturities.

Freddie Mac's $2 billion of three-month bills due Oct. 5, 2009 were sold at 0.187 percent, down from 0.198 percent for the $1 billion offering on June 29.

In addition, Freddie Mac auctioned $1 billion of six-month bills due Jan. 4, 2010 at a 0.305 percent rate, down from a 0.318 percent rate for $1 billion bills auctioned last week.

Demand for the three-month bills was weaker than last week, with a bid-to-cover ratio of 2.82 compared with 3.67 on June 29, while demand was also slightly weaker for the six-month bills at 4.03 against 4.05 last week.

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

Settlement for all bills is July 7. (Reporting by Caryn Trokie; Editing by James Dalgleish)