April 11, 2011 / 1:54 PM / in 7 years

Freddie Mac sells $3 bln bills at lower rates

NEW YORK, April 11 (Reuters) - Freddie Mac FMCC.OB on Monday said it sold $3.0 billion of bills at lower rates and weaker demand compared with the most recent sales of similar maturities.

Freddie Mac said it sold $1.0 billion of one-month bills, due May 9, 2011 at a stop-out rate of 0.030 percent, down from a 0.040 percent rate for its $500 million sale of one-month bonds on March 28.

Freddie Mac also sold $1 billion of three-month bills, due July 11, 2011, at a stop-out rate of 0.070 percent, down from the 0.075 percent rate for last week’s sale of $1.0 billion of three-month bills.

The company also sold $1 billion of six-month bills, due Oct. 11, 2011 at a 0.140 percent rate, also down from 0.150 percent for last week’s auction of $1.0 billion in six-month bills.

Demand for the one-month bills was weaker with a bid-to-cover ratio of 4.42 versus 6.02 for the bills sold March 28.

Demand for the three-month bills was weaker, with a bid-to-cover ratio of 4.42 versus 5.02 for bills sold last week. Demand for the six-month bills was also weaker with a 4.40 ratio, versus 5.57 for last week’s sale.

Settlement is April 12.

A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A lower ratio indicates weaker demand. (Reporting by Caryn Trokie; Editing by James Dalgleish)

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