Freddie Mac sells $4 billion in two-year notes

NEW YORK, Oct 9 (Reuters) - Freddie Mac, the second-largest provider of funding for U.S. home mortgages, on Thursday said it sold $4 billion in two-year debt at yields 1.25 percentage points above government debt.

Freddie Mac priced the "reference notes" at 99.858 for a yield of 2.943 percent, it said in a statement. The issue was increased from $3 billion due to investor interest, it said.

Citigroup Global Markets, JPMorgan Chase & Co. and Morgan Stanley managed the sale. (Reporting by Al Yoon; Editing by Tom Hals)